<SUBMISSION>
<ACCESSION-NUMBER>0000950134-04-016722
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>7
<PERIOD>20040930
<FILING-DATE>20041108
<DATE-OF-FILING-DATE-CHANGE>20041108
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>ENCORE WIRE CORP /DE/
<CIK>0000850460
<ASSIGNED-SIC>3350
<IRS-NUMBER>752274963
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>000-20278
<FILM-NUMBER>041125755
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>1410 MILLWOOD RD
<STREET2>P O BOX 1149
<CITY>MCKINNEY
<STATE>TX
<ZIP>75069
<PHONE>2145629473
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>1410 MILLWOOD RD
<STREET2>P O BOX 1149
<CITY>MCKINNEY
<STATE>TX
<ZIP>75069
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>d19811e10vq.htm
<DESCRIPTION>FORM 10-Q
<TEXT>
<HTML>
<HEAD>
<TITLE>e10vq</TITLE>
</HEAD>
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


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<P align="center" style="font-size: 14pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, D.C. 20549</B></DIV>


<P align="center" style="font-size: 18pt"><B>FORM 10-Q</B>


<P align="center" style="font-size: 12pt"><FONT face="Wingdings">&#120;</FONT> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF<BR>
THE SECURITIES EXCHANGE ACT OF 1934



<P align="center" style="font-size: 10pt">For the quarterly period ended<BR>
<B>September&nbsp;30, 2004</B>



<P align="center" style="font-size: 10pt"><B>OR</B>



<P align="center" style="font-size: 12pt">TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF<BR>
THE SECURITIES EXCHANGE ACT OF 1934



<P align="center" style="font-size: 10pt">For the transition period from ________ to _________



<P align="center" style="font-size: 10pt">Commission File Number: 0-20278



<P align="center" style="font-size: 24pt"><B>ENCORE WIRE CORPORATION</B>
<DIV align="center" style="font-size: 10pt"><B>(Exact name of registrant as specified in its charter)</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B><BR>
(State of Incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>75-2274963</B><BR>
(I.R.S. employer identification number)</TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top"><B>1410 Millwood Road<BR>
McKinney, Texas</B><BR>
(Address of principal executive offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>75069</B><BR>
(Zip code)</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><B>Registrant&#146;s telephone number, including area code: (972)&nbsp;562-9473</B>


<P align="left" style="font-size: 10pt">Indicate by check mark whether the registrant (1)&nbsp;has filed all reports
required to be filed by Section&nbsp;13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12&nbsp;months (or for such shorter period that the
registrant was required to file such Reports), and (2)&nbsp;has been subject to such
filing requirements for the past 90&nbsp;days. Yes <FONT face="Wingdings">&#120;</FONT> No


<P align="left" style="font-size: 10pt">Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule&nbsp;12b-2 of the Exchange Act). Yes <FONT face="Wingdings">&#120;</FONT> No



<P align="center" style="font-size: 10pt">Number of shares of Common Stock outstanding as of October&nbsp;31, 2004: 23,104,164



<P align="center" style="font-size: 10pt">Page 1 of 21 Sequentially Numbered Pages<BR>
Index to Exhibits on Page 20



<P>
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<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left">
<!-- TOC -->
</DIV>
<DIV align="left">
<A name="tocpage"></A>
</DIV>

<P align="right" style="font-size: 10pt">FORM 10-Q



<P align="center" style="font-size: 10pt"><B>ENCORE WIRE CORPORATION</B>



<P align="center" style="font-size: 10pt"><B>FORM 10-Q</B>



<P align="center" style="font-size: 10pt"><B>FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2004</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="94%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" colspan="3"><B>Page No.</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#101">PART I. FINANCIAL INFORMATION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px"><A href="#102">ITEM 1. Consolidated Financial Statements</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-10px"><A href="#103">Consolidated Balance Sheets September&nbsp;30, 2004 (Unaudited) and December&nbsp;31, 2003</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-10px"><A href="#104">Consolidated Statements of Income (Unaudited) Quarters and Nine Months ended September&nbsp;30, 2004 and
September&nbsp;30, 2003</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-10px"><A href="#105">Consolidated Statements of Cash Flows (Unaudited) Nine Months ended September&nbsp;30, 2004 and September&nbsp;30, 2003</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-10px"><A href="#106">Notes to Consolidated Financial Statements</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px"><A href="#107">ITEM 2. Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px"><A href="#108">ITEM 3. Quantitative and Qualitative Disclosures About Market Risk</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px"><A href="#109">ITEM 4. Controls and Procedures</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px"><A href="#110">PART II. OTHER INFORMATION</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px"><A href="#111">ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px"><A href="#112">ITEM 6. Exhibits</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px"><A href="#113">Signatures</A></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d19811exv10w1.htm">Credit Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d19811exv10w2.htm">Note Purchase Agreement</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d19811exv31w1.htm">Certification by Chairman & CEO Pursuant to Section 302</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d19811exv31w2.htm">Certification by Vice President, CFO, Treasurer & Secretary Pursuant to Section 302</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d19811exv32w1.htm">Certification by Chairman & CEO Pursuant to Section 906</A></FONT></TD></TR>
<TR><TD colspan="9"><FONT size="2">&nbsp;<A HREF="d19811exv32w2.htm">Certification by Vice President, CFO, Treasurer & Secretary Pursuant to Section 906</A></FONT></TD></TR>
</TABLE>
</DIV>


<DIV align="left">
<!-- /TOC -->
</DIV>


<P align="center" style="font-size: 10pt">2
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="right" style="font-size: 10pt">FORM 10-Q


<DIV align="left">
<A name="101"></A>
</DIV>

<P align="center" style="font-size: 10pt"><B>PART I. FINANCIAL INFORMATION</B>


<DIV align="left">
<A name="102"></A>
</DIV>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS


<P align="center" style="font-size: 10pt">ENCORE WIRE CORPORATION


<DIV align="left">
<A name="103"></A>
</DIV>

<P align="center" style="font-size: 10pt">CONSOLIDATED BALANCE SHEETS


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="74%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>September 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>December 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2003</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>In Thousands of Dollars</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>(Unaudited)</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>(See Note)</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD align="center"><DIV style="margin-left:10px; text-indent:-10px">ASSETS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Current Assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Cash</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">391</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Accounts receivable (net of allowance
of $532 and $490)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">117,076</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81,430</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Inventories (Note 3)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,746</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,344</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Prepaid expenses and other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,925</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,112</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Current taxes receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,613</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:40px; text-indent:-10px">Total current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">185,556</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146,277</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Property, plant and equipment-on the basis of cost:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Land</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,894</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,858</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Construction in progress</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,325</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,396</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Buildings and improvements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,120</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,855</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Machinery and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">115,747</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">104,849</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Furniture and fixtures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,992</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,942</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:40px; text-indent:-10px">Total property, plant, and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">162,078</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">146,900</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:40px; text-indent:-10px">Accumulated depreciation and amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67,976</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">86,406</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">78,924</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">126</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">98</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">272,088</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">225,299</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P>
<TABLE width="100%" border="0" cellpadding="2" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="right">Note:&nbsp;</TD>
    <TD>The consolidated balance sheet at December&nbsp;31, 2003 as
presented, is derived from the audited consolidated financial statements at
that date.</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">See accompanying notes.




<P align="center" style="font-size: 10pt">3
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="right" style="font-size: 10pt">FORM 10-Q



<P align="center" style="font-size: 10pt">ENCORE WIRE CORPORATION



<P align="center" style="font-size: 10pt">CONSOLIDATED BALANCE SHEETS (continued)


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="70%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>September 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>December 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2004</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2003</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>In Thousands of Dollars, Except Share Data</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>(Unaudited)</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>(See Notes)</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:40px; text-indent:-10px">LIABILITIES AND STOCKHOLDERS&#146; EQUITY</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Current liabilities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:40px; text-indent:-10px">Trade accounts payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">26,343</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">24,430</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:40px; text-indent:-10px">Accrued liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,231</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,432</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:40px; text-indent:-10px">Current income taxes payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,158</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:40px; text-indent:-10px">Current deferred income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,165</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:40px; text-indent:-10px">Total current liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,739</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40,020</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Non-current deferred income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,157</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,078</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Long-term notes payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53,425</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Stockholders&#146; equity:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:40px; text-indent:-10px">Common stock, $.01 par value:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:40px; text-indent:-10px">Authorized 40,000,000 shares; issued
25,863,114 and 25,450,125 shares;
outstanding 23,104,164 and 22,691,175
shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">259</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">255</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Additional paid-in capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36,865</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,108</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Treasury stock 2,758,950 and 2,758,950 shares
at cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(15,275</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(15,275</TD>
    <TD nowrap>)</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Accumulated other comprehensive income (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">239</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(492</TD>
    <TD nowrap>)</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Retained earnings</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">130,104</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">103,180</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:40px; text-indent:-10px">Total stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">152,192</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">121,776</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Total liabilities and stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">272,088</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">225,299</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P>
<TABLE width="100%" border="0" cellpadding="2" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="right">Note:&nbsp;</TD>
    <TD>The consolidated balance sheet at December&nbsp;31, 2003, as
presented, is derived from the audited consolidated financial statements at
that date.</TD>
</TR>
</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="2" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="right">Note:&nbsp;</TD>
    <TD>All share and per share data in this Quarterly Report have
been restated to reflect the effect of the Company&#146;s 3-for-2 stock split which
was effective in August&nbsp;2004.</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">See accompanying notes.




<P align="center" style="font-size: 10pt">4
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="right" style="font-size: 10pt">FORM 10-Q



<P align="center" style="font-size: 10pt">ENCORE WIRE CORPORATION


<DIV align="left">
<A name="104"></A>
</DIV>

<P align="center" style="font-size: 10pt">CONSOLIDATED STATEMENTS OF INCOME<BR>
(Unaudited)


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Quarter Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Nine Months Ended</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>September 30,</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>September 30,</B><HR size="1" noshade></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>In Thousands of Dollars, Except Per Share Data</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2004</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2003</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2004</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2003</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Net sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">158,629</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">113,877</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">455,719</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">261,614</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Cost of goods sold</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">136,859</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">96,255</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">379,991</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">226,534</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Gross profit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,770</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17,622</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">75,728</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,080</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Selling, general, and
administrative expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,124</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,935</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31,260</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21,871</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Operating income (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,646</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,687</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,468</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,209</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Net interest &#038; other expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">661</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">527</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,055</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,712</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Income (loss)&nbsp;before income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,985</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,160</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42,413</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11,497</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Provision (benefit)&nbsp;for income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,594</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,938</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,489</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,139</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Net income (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">6,391</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">5,222</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">26,924</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">7,358</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Net income (loss)&nbsp;per common and
common equivalent shares &#150; basic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">.28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">.23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">.32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Weighted average common and common
equivalent shares &#150; basic</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,104</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,681</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,989</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,679</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Net income (loss)&nbsp;per common and
common equivalent shares - diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">.27</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">.23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">.32</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Weighted average common and common
equivalent shares - diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,478</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,958</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,545</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,807</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>
<TR valign="top">
    <TD nowrap align="right">Note:&nbsp;</TD>
    <TD>All share and per share data in this Quarterly Report have been
restated to reflect the effect of the Company&#146;s 3-for-2 stock split which was
effective in August&nbsp;2004.</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">See accompanying notes.




<P align="center" style="font-size: 10pt">5
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt">FORM 10-Q



<P align="center" style="font-size: 10pt">ENCORE WIRE CORPORATION


<DIV align="left">
<A name="105"></A>
</DIV>

<P align="center" style="font-size: 10pt">CONSOLIDATED STATEMENTS OF CASH FLOWS<BR>
(Unaudited)


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="72%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Nine Months Ended</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>September 30,</B><HR size="1" noshade></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>In Thousands of Dollars</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2004</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2003</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">OPERATING ACTIVITIES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Net income (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">26,924</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">7,358</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Adjustments to reconcile net income to cash provided by
(used in) operating activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Depreciation and amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,619</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,070</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Provision for bad debts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">255</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">135</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Changes in operating assets and liabilities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Accounts receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(35,902</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(34,589</TD>
    <TD nowrap>)</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Inventory</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,598</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(5,242</TD>
    <TD nowrap>)</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Accounts payable and accrued liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,444</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30,526</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Other assets and liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(7,507</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(3,298</TD>
    <TD nowrap>)</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Current income taxes receivable/payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(1,914</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,771</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-10px">NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,517</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,731</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">INVESTING ACTIVITIES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Purchases of property, plant and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(18,613</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(3,613</TD>
    <TD nowrap>)</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Change in long-term investments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(38</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Proceeds from sale of equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,603</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">117</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:30px; text-indent:-10px">NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(16,048</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(3,415</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">FINANCING ACTIVITIES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Borrowings (repayments)&nbsp;under notes payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15,575</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(4,205</TD>
    <TD nowrap>)</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Proceeds from exercise of stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,761</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Purchase of treasury stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-10px">NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18,336</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(4,186</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Net increase (decrease)&nbsp;in cash</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,805</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">130</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Cash at beginning of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">391</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Cash at end of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,196</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">290</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">See accompanying notes.



<P align="center" style="font-size: 10pt">6
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt">FORM 10-Q



<P align="center" style="font-size: 10pt">ENCORE WIRE CORPORATION


<DIV align="left">
<A name="106"></A>
</DIV>

<P align="center" style="font-size: 10pt">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<BR>
(Unaudited)


<P align="left" style="font-size: 10pt">NOTE 1 &#150; BASIS OF PRESENTATION


<P align="left" style="font-size: 10pt">The unaudited consolidated financial statements of Encore Wire Corporation (the &#147;Company&#148;) have been
prepared in accordance with U.S. generally accepted accounting principles for
interim information and the instructions to Form 10-Q and Rule&nbsp;10-01 of
Regulation&nbsp;S-X. Accordingly, they do not include all of the information and
footnotes required by U.S. generally accepted accounting principles for
complete financial statements. In the opinion of management, all adjustments,
consisting only of normal recurring adjustments considered necessary for a fair
presentation, have been included. All share and per share data in
this Quarterly Report have been restated to reflect the effect of the
Company&#146;s 3-for-2 stock split which was effective in
August&nbsp;2004. Results of operations for interim periods
presented do not necessarily indicate the results that may be expected for the
entire year. These financial statements should be read in conjunction with the
audited consolidated financial statements and notes thereto included in the
Company&#146;s Annual Report on Form 10-K for the year ended December&nbsp;31, 2003.


<P align="left" style="font-size: 10pt">NOTE 2 &#150; STOCK BASED EMPLOYEE COMPENSATION


<P align="left" style="font-size: 10pt">The Company has a stock option plan for employees that provides for the granting of stock options. The Company
accounts for stock-based compensation utilizing the intrinsic value method in
accordance with the provisions of Accounting Principles Board Opinion No.&nbsp;25
(APB 25), &#147;Accounting for Stock Issued to Employees&#148; and related
interpretations. Accordingly, no compensation expense is recognized for fixed
option plans because the exercise prices of employee stock options equal or
exceed the market prices of the underlying stock on the dates of grant.




<P align="center" style="font-size: 10pt">7
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt">FORM 10-Q




<P align="left" style="margin-left:0%; font-size: 10pt">The following table represents the effect on net income (loss)&nbsp;and
earnings per share if the Company had applied the fair value based method and
recognition provisions of Statement of Financial Accounting Standards (SFAS)
No.&nbsp;123, &#147;Accounting for Stock-Based Compensation,&#148; to stock-based Employee
compensation: ($&#146;s in 000&#146;s)

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="54%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Quarter Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>Nine Months Ended</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>September 30,</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="7"><B>September 30,</B><HR size="1" noshade></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>In Thousands of Dollars, Except Per Share Data</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2004</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2003</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2004</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2003</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Net income (loss), as reported</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">6,391</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">5,222</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">26,924</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">7,358</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-20px">Add: Stock-based employee
compensation expense included in
reported income, net of related
tax effects</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:20px; text-indent:-20px">Deduct: Total stock-based
employee compensation expense
determined under fair value based
methods for all awards net of
related tax effects</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">282</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">296</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Pro forma net income (loss)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">6,296</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">5,127</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">26,642</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">7,062</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Net income (loss)&nbsp;per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Basic, as reported</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.28</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.32</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Basic, pro forma</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.27</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1.16</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.31</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Diluted, as reported</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.27</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.23</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1.14</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.32</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:30px; text-indent:-10px">Diluted, pro forma</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.27</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">1.13</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">0.31</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>




<P align="left" style="margin-left:0%; font-size: 10pt">As required, the pro forma disclosures above include options granted since
January&nbsp;1, 1995. Consequently, the effects of applying SFAS 123 for providing
pro forma disclosures may not be representative of the effects on reported net
income for future years until all options outstanding are included in the pro
forma disclosures. For purposes of pro forma disclosures, the estimated fair
value of stock-based compensation plans and other options is amortized to
expense primarily over the vesting period.


<P align="center" style="font-size: 10pt">8
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt">FORM 10-Q


<P align="left" style="font-size: 10pt">NOTE 3 &#150; INVENTORIES


<P align="left" style="font-size: 10pt">Inventories are stated at the lower of cost, determined by the last-in, first-out (LIFO)&nbsp;method, or market.


<P align="left" style="font-size: 10pt">Inventories (in thousands) consisted of the following:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="65%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>September 30,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>December 31,</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2004</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>2003</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Raw materials</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">9,330</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">12,976</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Work-in-process</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,234</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,490</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Finished goods</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,322</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43,507</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69,886</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61,973</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Adjust to LIFO cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(18,140</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">(2,629</TD>
    <TD nowrap>)</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51,746</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,344</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Lower of Cost or Market Adjustment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">51,746</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">59,344</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt">An actual valuation of inventory under the LIFO method can be made only at
the end of each year based on the inventory levels and costs at that time.
Accordingly, interim LIFO calculations must necessarily be based on
management&#146;s estimates of expected year-end inventory levels and costs.
Because these are subject to many forces beyond management&#146;s control, interim
results are subject to the final year-end LIFO inventory valuation. During the
third quarter of 2004, the Company liquidated the LIFO inventory layer
established in 2003 and a portion of the layer established in 2002. Under
LIFO, these prior year layers were liquidated at historical costs that were
substantially less than current cost. The net effect of these prior year
inventory layer liquidations was to reduce cost of sales by $3.6&nbsp;million in the
quarter, which resulted in a $2.3&nbsp;million increase in net income after tax.


<P align="left" style="font-size: 10pt">NOTE 4 &#150; NET INCOME PER SHARE


<P align="left" style="font-size: 10pt">Net income (loss)&nbsp;per common and common
equivalent share is computed using the weighted average number of shares of
common stock and common stock equivalents outstanding during each period. If
dilutive, the effect of stock options, treated as common stock equivalents, is
calculated using the treasury stock method.



<P align="center" style="font-size: 10pt">9
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt">FORM 10-Q


<P align="left" style="font-size: 10pt">The following table sets forth the computation of basic and diluted net
income per share:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="66%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Quarter Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Quarter Ended</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>9/30/04</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>9/30/03</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Numerator:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">6,390,548</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">5,222,122</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Denominator:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Denominator for basic
earnings per share &#150;
weighted average
shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,104,164</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,680,837</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Effect of dilutive securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Employee stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">374,219</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">277,410</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Denominator for diluted earnings per share
&#150; weighted average shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,478,383</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,958,247</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="left" style="font-size: 10pt">The following table sets forth the computation of basic and diluted earnings per share:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="66%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Nine Months</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Nine Months</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Ended</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>9/30/04</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>9/30/03</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Numerator:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">26,923,819</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">7,358,378</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:20px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Denominator:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Denominator for basic earnings per share &#150; weighted average
shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,988,913</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,679,352</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Effect of dilutive securities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:20px; text-indent:-10px">Employee stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">556,306</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">127,929</TD>
    <TD>&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD><DIV style="margin-left:20px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="1" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Denominator for diluted earnings per share &#150; weighted average shares</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23,545,219</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22,807,281</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:20px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right"><HR size="4" noshade>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">10
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt">FORM 10-Q


<P align="left" style="font-size: 10pt">NOTE 5 &#150; LONG TERM NOTE PAYABLE


<P align="left" style="font-size: 10pt">Effective August&nbsp;27, 2004, the Company through its indirectly wholly-owned subsidiary, Encore Wire Limited, a Texas
Limited partnership (&#147;Encore Wire Limited&#148;), refinanced its unsecured loan
facility with two banks (the &#147;Financing Agreement&#148;) and also arranged for a
private placement of debt (the &#147;Note Purchase Agreement&#148;). The Company is the
guarantor of the indebtedness. Obligations under the Financing Agreement and
the Note Purchase Agreement are the only contractual obligations or commercial
borrowing commitments of the Company. The term of the Financing Agreement
extends through August&nbsp;27, 2009. The Financing Agreement provides for maximum
borrowings of the lesser of $85&nbsp;million or the amount of eligible accounts
receivable plus the amount of eligible finished goods and raw materials, less
any reserves established by the banks. The calculated maximum borrowing amount
available at September&nbsp;30, 2004, as computed under the Financing Agreement, was
$85&nbsp;million. The Financing Agreement is with two banks, Bank of America, N.A.,
as Agent, and Wells Fargo Bank, National Association, and replaces the previous
financing agreement that was effective August&nbsp;31, 1999 and had been extended by
amendments through May&nbsp;31, 2007 with a total credit line of $125&nbsp;million.


<P align="left" style="font-size: 10pt">Concurrent with the Financing Agreement, Encore Wire Limited and the Company,
through its agent bank, entered into the Note Purchase Agreement with Hartford
Life Insurance Company, Great-West Life &#038; Annuity Insurance Company, London
Life Insurance Company and London Life and Casualty Reinsurance Corporation
(collectively referred to as the &#147;Purchasers&#148;), whereby Encore Wire Limited
issued and sold $45&nbsp;million of 5.27% Senior Notes, Series&nbsp;2004-A, due August
27, 2011 (the &#147;Senior Notes&#148;) to the Purchasers, the proceeds of which were
used to repay a portion of the Company&#146;s outstanding indebtedness under the
previous financing agreement. Through its agent bank, the Company then entered
into an interest rate swap agreement to convert the fixed rate on the Senior
Notes to a variable rate based on LIBOR plus a fixed adder for the seven year
duration of these notes.


<P align="left" style="font-size: 10pt">The Financing Agreement and the Senior Notes are
unsecured and contain customary covenants and events of default. The Company
was in compliance with these covenants, as of September&nbsp;30, 2004. Under the
Financing Agreement, the Company is allowed to pay cash dividends. At
September&nbsp;30, 2004, the total balance outstanding under the Financing Agreement
and the Senior Notes was $69.0&nbsp;million. Amounts outstanding under the
Financing Agreement are payable on August&nbsp;27, 2009, with interest payments due
quarterly. Interest payments on the Senior Notes are due semi-annually.


<P align="left" style="font-size: 10pt">In December&nbsp;2001, the Company entered into an interest rate swap agreement on
$24.0&nbsp;million of its variable rate debt in order to hedge against an increase
in variable interest rates. The terms of the agreement fix the interest rate
on $24.0&nbsp;million of the Company&#146;s variable rate, long-term note payable to 4.6%
per annum plus a variable adder that is based on certain financial ratios
contained in the loan covenants. This three-year agreement expires on December
20, 2004. For the nine months ended September&nbsp;30, 2004, the Company recorded
an unrealized gain of $731,032, resulting in a net unrealized gain of $238,578
recorded in accumulated other comprehensive income



<P align="center" style="font-size: 10pt">11
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt">FORM 10-Q


<P align="left" style="font-size: 10pt">(loss)&nbsp;as of September&nbsp;30, 2004 in the equity section of the balance sheet to
account for the net effect of the two interest rate swaps.


<P align="left" style="font-size: 10pt">NOTE 6 &#150; STOCK REPURCHASE AUTHORIZATION


<P align="left" style="font-size: 10pt">On November&nbsp;6, 2001, the Board of Directors of the
Company approved a stock repurchase program covering the purchase of up to
450,000 shares of its common stock dependent upon market conditions. Common
stock purchases under this program were authorized through December&nbsp;31, 2002 on
the open market or through privately negotiated transactions at prices
determined by the Chairman of the Board or the President of the Company. As of
December&nbsp;31, 2002, 225,300 shares had been purchased under this authorization.
Early in 2003, the Board of Directors extended this program through December
31, 2003 for the remaining 224,700 shares. There were no repurchases of stock
in 2003. In February&nbsp;2004, the Board of Directors extended this program
through December&nbsp;31, 2004 for the remaining 224,700 shares. There were no
repurchases of stock during the first three quarters of 2004.


<P align="left" style="font-size: 10pt">NOTE 7 &#150; CONTINGENCIES


<P align="left" style="font-size: 10pt">The Company is a party to litigation and claims that arise out
of the ordinary business of the Company. While the results of these matters
cannot be predicted with certainty, the Company does not believe the final
outcome of such litigation and claims will have a material adverse effect on
the financial condition, the results of operation or the cash flows of the
Company. The Company also believes that it has adequate insurance to cover any
damages that may ultimately be awarded.


<DIV align="left">
<A name="107"></A>
</DIV>
<P align="left" style="font-size: 10pt">ITEM 2. MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS


<P align="left" style="font-size: 10pt"><B>General</B>


<P align="left" style="font-size: 10pt">The Company is a low-cost manufacturer of copper electrical building
wire and cable. The Company is a significant supplier of residential wire for
interior wiring in homes, apartments and manufactured housing and commercial
wire for commercial and industrial buildings.


<P align="left" style="font-size: 10pt">The Company&#146;s operating results in any given time period are driven by several key factors, including; the
volume of product produced and shipped, the cost of copper and other raw
materials, the competitive pricing environment in the wire industry and the
resulting influence on gross margins and the efficiency with which the
Company&#146;s plant operates during the period, among others. Price competition
for electrical wire and cable is intense, and the Company sells its products in
accordance with prevailing market prices. Copper is the principal raw material
used by the Company in manufacturing its products. Copper accounted for
approximately 67.1%, 63.9% and 66.6% of the Company&#146;s cost of goods sold during
fiscal 2003, 2002 and 2001, respectively. The price of copper fluctuates,
depending on general economic conditions and in relation to supply and demand
and other factors, which has caused significant variations in the cost of
copper purchased by the Company. The Company cannot predict copper prices in
the future or the effect of fluctuations in the cost of copper on the Company&#146;s
future operating results.



<P align="center" style="font-size: 10pt">12
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt">FORM 10-Q


<P align="left" style="font-size: 10pt">The following discussion and analysis relates to factors that have affected the
operating results of the Company for the quarterly and nine-month periods ended
September&nbsp;30, 2004 and 2003. Reference should also be made to the audited
financial statements and notes thereto included in the Company&#146;s Annual Report
on Form 10-K for the year ended December&nbsp;31, 2003.


<P align="left" style="font-size: 10pt"><B>Results of Operations</B>


<P align="left" style="font-size: 10pt">Quarter Ended September&nbsp;30, 2004 Compared to Quarter Ended September&nbsp;30, 2003


<P align="left" style="font-size: 10pt">Net sales for the third quarter of 2004 amounted to $158.6&nbsp;million compared
with net sales of $113.9&nbsp;million for the third quarter of 2003. This 39%
dollar increase was primarily the result of a 38% increase in the average price
of wire sold. The average cost per pound of raw copper purchased increased in
the third quarter of 2004 compared to the third quarter of 2003, and was the
principal reason the average sales price for wire increased. Fluctuations in
sales prices are primarily a result of changing copper raw material prices and
product price competition.


<P align="left" style="font-size: 10pt">Cost of goods sold increased to $136.9&nbsp;million, or
86.3% of net sales, in the third quarter of 2004, compared to $96.3&nbsp;million, or
84.5% of net sales, in the third quarter of 2003. Gross profit increased to
$21.8&nbsp;million, or 13.7% of net sales, in the third quarter of 2004 versus $17.6
million, or 15.5% of net sales, in the third quarter of 2003. The increased
gross profit dollar increase was primarily the result of the increased prices
in 2004 versus 2003 while gross margin percentages were negatively impacted by
price competition.


<P align="left" style="font-size: 10pt">Inventories are stated at the lower of cost, using the
last-in, first-out (LIFO)&nbsp;method, or market. The Company maintains only one
inventory pool for LIFO purposes as all inventories held by the Company
generally relate to the Company&#146;s only business segment, the manufacture and
sale of copper building wire products. As permitted by U.S. generally accepted
accounting principles, the Company maintains its inventory costs and cost of
goods sold on a first-in, first-out (FIFO)&nbsp;basis and makes a quarterly
adjustment to adjust total inventory and cost of goods sold from FIFO to LIFO.
The Company applies the lower of cost or market (LCM)&nbsp;test by comparing the
LIFO cost of its raw materials, work-in-process and finished goods inventories
to estimated market values, which are based primarily upon the most recent
quoted market price of copper, in pound quantities, as of the end of each
reporting period. Additionally, future reductions in the quantity of inventory
on hand could cause copper that is carried in inventory at costs different from
the cost of copper in the period in which the reduction occurs to be included
in costs of goods sold for that period.


<P align="left" style="font-size: 10pt">Despite increasing copper costs during the third quarter 2004, a LIFO adjustment was recorded decreasing cost of sales
by $.8&nbsp;million. During the quarter, the Company liquidated the LIFO inventory
layer established in 2003 and a portion of the layer established in 2002.
Under LIFO, these prior year layers were liquidated at historical costs that
were substantially less than current cost. The net effect of these prior year
inventory layer liquidations was to reduce cost of sales by $3.6&nbsp;million in the
quarter, which resulted in a $2.3&nbsp;million increase in net income after tax.
Based on the current copper prices, there is no LCM adjustment necessary.
Future reductions in the price of copper could require the Company to record a
LCM adjustment against the related inventory balance, which would result in a
negative impact on net income.



<P align="center" style="font-size: 10pt">13
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt">FORM 10-Q


<P align="left" style="font-size: 10pt">Selling expenses for the third quarter of 2004 were $9.3&nbsp;million, or 5.8%
of net sales, compared to $7.1&nbsp;million, or 6.3% of net sales, in the third
quarter of 2003. The percentage decrease was due to the increase in selling
prices per pound of wire that reduced the freight costs as a percentage of net
sales. General and administrative expenses increased to $1.8&nbsp;million, or 1.2%
of net sales, in the third quarter of 2004 compared to $1.7&nbsp;million, or 1.5% of
net sales, in the third quarter of 2003. The General and Administrative costs
are semi-fixed by nature and therefore did not increase proportionately with
sales and dropped as a percentage of sales. The provision for bad debts was
$45,000 in the third quarter of 2004 versus $45,000 in the third quarter of
2003.


<P align="left" style="font-size: 10pt">Net interest expense was $661,000 in the third quarter of 2004 compared
to $527,000 in the third quarter of 2003. The increase was due to slightly
higher average debt balances and interest rates during the third quarter of
2004 than in the comparable period during 2003.


<P align="left" style="font-size: 10pt">As a result of the foregoing factors, the Company&#146;s net income increased to $6.4&nbsp;million in the third
quarter of 2004 from $5.2&nbsp;million in the third quarter of 2003.


<P align="left" style="font-size: 10pt">Nine Months Ended September&nbsp;30, 2004 compared to Nine Months Ended September&nbsp;30, 2003


<P align="left" style="font-size: 10pt">Net sales for the first nine months of 2004 amounted to $455.7&nbsp;million compared
with net sales of $261.6&nbsp;million for the first nine months of 2003. This
dollar increase was the result of a 18% increase in the volume of product
shipped, coupled with a 49% increase in the average price of wire sold.
Fluctuations in sales prices are primarily a result of changing copper raw
material prices and product price competition.


<P align="left" style="font-size: 10pt">Cost of goods sold increased to $380.0&nbsp;million in the first nine months of 2004, compared to $226.5&nbsp;million in
the first nine months of 2003. Gross profit increased to $75.7&nbsp;million, or
16.6% of net sales, in the first nine months of 2004 versus $35.1&nbsp;million, or
13.4% of net sales, in the first nine months of 2003. The increased gross
profit and gross margin percentages were primarily the result of the increased
volumes and prices in 2004 versus 2003.


<P align="left" style="font-size: 10pt">Inventories are stated at the lower of cost, using the last-in, first-out (LIFO)&nbsp;method, or market. The Company
maintains only one inventory pool for LIFO purposes as all inventories held by
the Company generally relate to the Company&#146;s only business segment, the
manufacture and sale of copper building wire products. As permitted by
accounting principles generally accepted in the United States, the Company
maintains its inventory costs and cost of goods sold on a first-in, first-out
(FIFO)&nbsp;basis and makes a quarterly adjustment to adjust total inventory and
cost of goods sold from FIFO to LIFO. The Company applies the lower of cost or
market test by comparing the LIFO cost of its raw materials, work-in-process
and finished goods inventories to estimated market values, which are based
primarily upon the most recent quoted market price of copper, in pound
quantities, as of the end of each reporting period. Future reductions in the
quantity of inventory on hand could cause copper that is carried in inventory
at costs different from the cost of copper in the period in which the reduction
occurs to be included in costs of goods sold for that period at the different
price.



<P align="center" style="font-size: 10pt">14
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt">FORM 10-Q


<P align="left" style="font-size: 10pt">As a result of increasing copper costs during the first nine months of 2004, a
LIFO adjustment was recorded increasing cost of sales by $15.5&nbsp;million during
the period. The $15.5&nbsp;million net LIFO adjustment was partially offset by the
$3.6&nbsp;million effect of the liquidation of the LIFO inventory layer established
in 2003 and a portion of the 2002 layer, as discussed in the quarterly section
above. Based on the current copper prices, there is no LCM adjustment
necessary. Future reductions in the price of copper could require the Company
to record a lower of cost or market adjustment against the related inventory
balance, which would result in a negative impact on net income.


<P align="left" style="font-size: 10pt">Selling expenses for the first nine months of 2004 were $25.5&nbsp;million, or 5.6% of net
sales, compared to $16.6&nbsp;million, or 6.4% of net sales, in the same period of
2003. The percentage decrease was due to a decrease in freight costs as a
percentage of net sales, attributable to freight becoming relatively lower as
sales prices increased substantially in 2004. General and administrative
expenses increased to $5.5&nbsp;million, or 1.2% of net sales, in the first nine
months of 2004 compared to $5.1&nbsp;million, or 1.9% of net sales, in the same
period of 2003. General and administrative costs are semi-fixed in nature and
decreased dramatically in percentage terms as the Company dramatically
increased sales dollars in 2004 versus 2003. The provision for bad debts was
$255,000 in the first nine months of 2004 versus $135,000 in the first nine
months of 2003, as the Company added to its provision to reflect the larger
accounts receivable balances outstanding consistent with the rapid growth of
sales.


<P align="left" style="font-size: 10pt">Net interest expense was $2,055,000 in the first nine months of 2004
compared to $1,712,000 in the first nine months of 2003. The increase was due
to higher average debt balances during the first nine months of 2004 than
during the comparable period of 2003.


<P align="left" style="font-size: 10pt">As a result of the foregoing factors, the Company&#146;s net income increased to $26.9&nbsp;million in the first nine months of
2004 from $7.4&nbsp;million in the first nine months of 2003.


<P align="left" style="font-size: 10pt"><B>Liquidity and Capital Resources</B>


<P align="left" style="font-size: 10pt">The Company maintains a substantial inventory of finished products
to satisfy customer&#146;s prompt delivery requirements. As is customary in the
industry, the Company provides payment terms to most of its customers that
exceed terms that it receives from its suppliers. Therefore, the Company&#146;s
liquidity needs have generally consisted of operating capital necessary to
finance these receivables and inventory. Capital expenditures have
historically been necessary to expand the production capacity of the Company&#146;s
manufacturing operations. The Company has historically satisfied its liquidity
and capital expenditure needs with cash generated from operations, borrowings
under its revolving credit facilities and sales of its common stock. The
Company uses its&#146; revolving credit facility to manage day to day operating cash
needs as required by daily fluctuations in working capital. The total debt
balance fluctuates daily as cash inflows differ from cash outflows. The ending
balance of debt outstanding at the end of a quarter, coupled with explanations
detailing cash flows and changes in the debt balance in these quarterly
reports, is representative of the net effect of these cash flows during the
period.


<P align="left" style="font-size: 10pt">Effective August&nbsp;27, 2004, the Company through its indirectly
wholly-owned subsidiary, Encore Wire Limited, a Texas Limited partnership
(&#147;Encore Wire Limited&#148;), refinanced its unsecured loan facility with two banks
(the &#147;Financing Agreement&#148;) and also arranged



<P align="center" style="font-size: 10pt">15
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt">FORM 10-Q


<P align="left" style="font-size: 10pt">for a private placement of debt (the &#147;Note Purchase Agreement&#148;). The Company
is the guarantor of the indebtedness. Obligations under the Financing
Agreement and the Note Purchase Agreement are the only contractual obligations
or commercial borrowing commitments of the Company. The term of the Financing
Agreement extends through August&nbsp;27, 2009. The Financing Agreement provides
for maximum borrowings of the lesser of $85&nbsp;million or the amount of eligible
accounts receivable plus the amount of eligible finished goods and raw
materials, less any reserves established by the banks. The calculated maximum
borrowing amount available at September&nbsp;30, 2004, as computed under the
Financing Agreement, was $85&nbsp;million. The Financing Agreement is with two
banks, Bank of America, N.A., as Agent, and Wells Fargo Bank, National
Association, and replaces the previous financing agreement that was effective
August&nbsp;31, 1999 and had been extended by amendments through May&nbsp;31, 2007 with a
total credit line of $125&nbsp;million.


<P align="left" style="font-size: 10pt">Concurrent with the Financing Agreement, Encore Wire Limited and the Company, through its agent bank, entered into the
Note Purchase Agreement with Hartford Life Insurance Company, Great-West Life &#038;
Annuity Insurance Company, London Life Insurance Company and London Life and
Casualty Reinsurance Corporation (collectively referred to as the
&#147;Purchasers&#148;), whereby Encore Wire Limited issued and sold $45&nbsp;million of 5.27%
Senior Notes, Series&nbsp;2004-A, due August&nbsp;27, 2011 (the &#147;Senior Notes&#148;) to the
Purchasers, the proceeds of which were used to repay a portion of the Company&#146;s
outstanding indebtedness under the previous financing agreement. Through its
agent bank, the Company then entered into an interest rate swap agreement to
convert the fixed rate on the Senior Notes to a variable rate based on LIBOR
plus a fixed adder for the seven year duration of these notes.


<P align="left" style="font-size: 10pt">The Financing Agreement and the Senior Notes are unsecured and contain customary covenants
and events of default. The Company was in compliance with these covenants, as
of September&nbsp;30, 2004. Under the Financing Agreement, the Company is allowed
to pay cash dividends. At September&nbsp;30, 2004, the total balance outstanding
under the Financing Agreement and the Senior Notes was $69.0&nbsp;million. Amounts
outstanding under the Financing Agreement are payable on August&nbsp;27, 2009, with
interest payments due quarterly. Interest payments on the Senior Notes are due
semi-annually.


<P align="left" style="font-size: 10pt">In December&nbsp;2001, the Company entered into an interest rate
swap agreement on $24.0&nbsp;million of its variable rate debt in order to hedge
against an increase in variable interest rates. The terms of the agreement fix
the interest rate on $24.0&nbsp;million of the Company&#146;s variable rate, long-term
note payable to 4.6% per annum plus a variable adder that is based on certain
financial ratios contained in the loan covenants. This three-year agreement
expires on December&nbsp;20, 2004. For the nine months ended September&nbsp;30, 2004,
the Company recorded an unrealized gain of $731,032, resulting in a net
unrealized gain of $238,578 recorded in accumulated other comprehensive income
(loss)&nbsp;as of September&nbsp;30, 2004 in the equity section of the balance sheet to
account for the net effect of the two interest rate swaps.


<P align="left" style="font-size: 10pt">Cash provided by operations was $1.5&nbsp;million in the first nine months of 2004 compared to $7.7
million of cash provided by operations in the first nine months of 2003. This
decrease in cash provided by operations resulted primarily from a shift in
income taxes payable / receivable of $5.7&nbsp;million from 2003 to 2004. The
decrease in taxes payable is primarily the result of the company taking
advantage of accelerated depreciation under



<P align="center" style="font-size: 10pt">16
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt">FORM 10-Q


<P align="left" style="font-size: 10pt">current tax laws and changing its&#146; tax inventory accounting method from FIFO to
LIFO. All other items that changed from year to year were associated with the
growth in earnings in 2004 and timing differences. Cash used in investing
activities increased to $16.0&nbsp;million in the first nine months of 2004 from
$3.4&nbsp;million in the first nine months of 2003. In 2004, the funds were used
primarily to construct the new 162,000 square foot addition to the Company&#146;s
distribution center as well as the purchase of associated manufacturing
equipment that was part of the Company&#146;s capital plan announced in a press
release issued on February&nbsp;3, 2004. The $18.3&nbsp;million of cash provided by
financing activities in the first nine months of 2004 was a result of the
Company&#146;s increase in outstanding bank debt and from the sale of common stock
through option exercises.


<P align="left" style="font-size: 10pt">During the remainder of 2004, the Company expects its capital expenditures will consist of additional plant and equipment for its
residential and commercial wire operations. The total capital expenditures
associated with these projects are currently estimated to be in the $19.0 to
$21.0&nbsp;million range in 2004. The Company will continue to manage its working
capital requirements. These requirements may increase as a result of expected
continued sales increases and may be impacted by the price of copper. The
Company believes that the cash flow from operations and the financing available
under the new Financing Agreement will satisfy working capital and capital
expenditure requirements for the next twelve months.


<P align="left" style="font-size: 10pt"><B>Information Regarding Forward Looking Statements</B>


<P align="left" style="font-size: 10pt">This report on Form 10-Q contains various &#147;forward-looking statements&#148; (within the meaning of Section&nbsp;27A of the
securities Act of 1933, as amended, and Section&nbsp;21E of the Securities Exchange
Act of 1934, as amended) and information that are based on management&#146;s belief
as well as assumptions made by and information currently available to
management. Although the Company believes that the expectations reflected in
such forward-looking statements are reasonable, it can give no assurance that
such expectations will prove to have been correct. Such statements are subject
to certain risks, uncertainties and assumptions. Should one or more of these
risks or uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those expected. Among the
key factors that may have a direct bearing on the Company&#146;s operating results
are fluctuations in the economy and in the level of activity in the building
and construction industry, demand for the Company&#146;s products, the impact of
price competition and fluctuations in the price of copper.


<DIV align="left">
<A name="108"></A>
</DIV>
<P align="left" style="font-size: 10pt">ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK


<P align="left" style="font-size: 10pt">There have been no material changes from the information provided in Item&nbsp;7.A of the Company&#146;s
Annual Report on Form 10-K for the year ended December&nbsp;31, 2003.


<DIV align="left">
<A name="109"></A>
</DIV>
<P align="left" style="font-size: 10pt">ITEM 4. CONTROLS AND PROCEDURES


<P align="left" style="font-size: 10pt">As of the end of the period covered by this report, an evaluation was performed under the supervision and with the participation of
the Company&#146;s management, including the Chief Executive Officer (the &#147;CEO&#148;) and
the Chief Financial Officer (the &#147;CFO&#148;), of the effectiveness of the design and
operation of the Company&#146;s disclosure controls and procedures pursuant to
Exchange Act Rule&nbsp;13a-15 and 15d-15. Based on that



<P align="center" style="font-size: 10pt">17
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt">FORM 10-Q


<P align="left" style="font-size: 10pt">evaluation, the Company&#146;s management, including the CEO and CFO, concluded that
the Company&#146;s disclosure controls and procedures are adequately designed to
ensure that the information required to be disclosed in this report has been
accumulated and communicated to management, including the CEO and CFO, as
appropriate, to allow timely decisions regarding such required disclosure and
that the Company&#146;s disclosure controls and procedures are functioning
effectively.


<P align="left" style="font-size: 10pt">There have been no changes in the Company&#146;s internal control over financial reporting or in other factors that have materially affected, or
are reasonably likely to materially affect, internal control over financial
reporting during the period covered by this report.


<DIV align="left">
<A name="110"></A>
</DIV>
<P align="left" style="font-size: 10pt"><B>Part&nbsp;II. OTHER INFORMATION</B>






<DIV align="left">
<A name="111"></A>
</DIV>

<P align="left" style="font-size: 10pt">ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS


<P align="left" style="font-size: 10pt"><B>Stock Repurchase Program</B>


<P align="left" style="font-size: 10pt">On November&nbsp;6, 2001, the Board of Directors of the Company approved a stock repurchase program covering the purchase of up
to 450,000 shares of its common stock dependent upon market conditions. Common
stock purchases under this program were authorized through December&nbsp;31, 2002 on
the open market or through privately negotiated transactions at prices
determined by the Chairman of the Board or the President of the Company. As of
December&nbsp;31, 2002, 225,300 shares had been purchased under this authorization.
Early in 2003, the Board of Directors extended this program through December
31, 2003 for the remaining 224,700 shares. There were no repurchases of stock
in 2003. In February&nbsp;2004, the Board of Directors extended this program
through December&nbsp;31, 2004 for the remaining 224,700 shares. There were no
repurchases of stock during the first three quarters of 2004.


<DIV align="left">
<A name="112"></A>
</DIV>
<P align="left" style="font-size: 10pt">ITEM 6. EXHIBITS


<P align="left" style="font-size: 10pt">The information required by this Item&nbsp;6 is set forth in the Index to
Exhibits accompanying this Form 10-Q.



<P align="center" style="font-size: 10pt">18
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt">FORM 10-Q


<DIV align="left">
<A name="113"></A>
</DIV>

<P align="center" style="font-size: 10pt">SIGNATURES




<P align="left" style="margin-left:3%; font-size: 10pt">Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on
behalf by the undersigned thereunto duly authorized.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="36%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="59%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">ENCORE WIRE CORPORATION</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Registrant)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dated: November&nbsp;8, 2004
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">/s/ VINCENT A. REGO</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Vincent A. Rego, Chairman of the Board and<BR>
Chief Executive Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dated: November&nbsp;8, 2004
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">/s/ DANIEL L. JONES</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Daniel L. Jones, President and<BR>
Chief Operating Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dated: November&nbsp;8, 2004
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">/s/ FRANK J. BILBAN</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Frank J. Bilban, Vice President &#150; Finance,<BR>
Treasurer and Secretary<BR>
Chief Financial Officer</TD>
</TR>
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</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">19
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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="right" style="font-size: 10pt">FORM 10-Q


<DIV align="left">
<A name="114"></A>
</DIV>

<P align="center" style="font-size: 10pt">INDEX TO EXHIBITS


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>&nbsp;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Number</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Description</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certificate of Incorporation of Encore Wire Corporation, as
amended through July&nbsp;20, 2004 (filed on Exhibit&nbsp;3.1 to the
Company&#146;s Quarterly Report on Form&nbsp;10-Q for the quarter
ended June&nbsp;30, 2004, and incorporated herein by reference).</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">3.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Amended and Restated Bylaws of Encore Wire Corporation, as
amended through July&nbsp;20, 2004 (filed as Exhibit&nbsp;3.2 to the
Company&#146;s Quarterly Report on Form&nbsp;10-Q for the quarter
ended June&nbsp;30, 2004, and incorporated herein by reference).</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Credit Agreement by and among Encore Wire Limited, as
Borrower, Bank of America, N.A., as Agent, and Bank of
America, N.A. and Wells Fargo Bank, National Association,
as Lenders, dated August&nbsp;27, 2004 (included herein).</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Note Purchase Agreement by and among Encore Wire Limited
and Encore Wire Corporation, as Debtors, and Hartford Life
Insurance Company, Great-West Life &#038; Annuity Insurance
Company, London Life Insurance Company and London Life and
Casualty Reinsurance Corporation, as Purchasers, dated
August&nbsp;27, 2004 (included herein).</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.3*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1999 Stock Option Plan, as amended and restated, effective
as of October&nbsp;24, 2001 (filed as Exhibit&nbsp;99.1 to the
Company&#146;s Registration Statement on Form&nbsp;S-8 (No.
333-86620), and incorporated herein by reference).</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">

<TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.4*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1989 Stock Option Plan, as amended and restated (filed as
Exhibit&nbsp;4.1 to the Company&#146;s Registration Statement on Form
S-8 (No.&nbsp;333-38729), and incorporated herein by reference),
terminated except with respect to outstanding options
thereunder.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">31.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certification by Vincent A. Rego, Chairman and Chief
Executive Officer of Encore Wire Corporation, dated
November&nbsp;8, 2004 and submitted pursuant to Rule
13a-14(a)/15d-14(a) and pursuant to Section&nbsp;302 of the
Sarbanes-Oxley Act of 2002.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">31.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certification by Frank J. Bilban, Vice President-Finance,
Chief Financial Officer, Treasurer and Secretary of Encore
Wire Corporation, dated November&nbsp;8, 2004 and submitted
pursuant to Rule&nbsp;13a-14(a)/15d-14(a) and pursuant to
Section&nbsp;302 of the Sarbanes-Oxley Act of 2002.</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">20
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt">FORM 10-Q


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="96%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="font-size: 8pt">
    <TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px"><B>Exhibit<BR>
Number</B><HR noshade size="1">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom"><B>Description</B><HR noshade size="1"></TD>
</TR>


<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">32.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certification by Vincent A. Rego, Chairman and Chief
Executive Officer of Encore Wire Corporation, dated
November&nbsp;8, 2004 and submitted as required by 18 U.S.C.
1350, as adopted pursuant to Section&nbsp;906 of the
Sarbanes-Oxley Act of 2002.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">32.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Certification by Frank J. Bilban, Vice President-Finance,
Chief Financial Officer, Treasurer and Secretary of Encore
Wire Corporation, dated November&nbsp;8, 2004 as required by 18
U.S.C. 1350, as adopted pursuant to Section&nbsp;906 of the
Sarbanes-Oxley Act of 2002.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">*
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Management contract or compensatory plan.</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">21
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>d19811exv10w1.htm
<DESCRIPTION>CREDIT AGREEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>exv10w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="right" style="font-size: 10pt"><B>Exhibit&nbsp;10.1</B>



<P align="right" style="font-size: 10pt">Published CUSIP Number: 29256UAB9



<P align="center" style="font-size: 10pt"><HR size="1" noshade width="100%" align="center">



<P align="center" style="font-size: 10pt"><B>CREDIT AGREEMENT</B>



<P align="center" style="font-size: 10pt"><B>by and among</B>



<P align="center" style="font-size: 10pt"><B>ENCORE WIRE LIMITED</B>



<DIV align="center" style="font-size: 10pt"><B>as Borrower,</B>
</DIV>


<P align="center" style="font-size: 10pt"><B>BANK OF AMERICA, N.A., as Agent,</B>



<P align="center" style="font-size: 10pt"><B>and</B>



<DIV align="center" style="font-size: 10pt"><B>WELLS FARGO BANK, NATIONAL ASSOCIATION,<BR>
as Syndication Agent and a Lender</B>
</DIV>


<P align="center" style="font-size: 10pt"><B>and</B>



<P align="center" style="font-size: 10pt"><B>The Other Lenders Party Thereto</B>



<P align="center" style="font-size: 10pt"><B>Dated as of August&nbsp;27, 2004</B>



<P align="center" style="font-size: 10pt"><HR size="1" noshade width="100%" align="center">



<P align="center" style="font-size: 10pt"><B>BANC OF AMERICA SECURITIES LLC,<BR>
as Sole Lead Arranger and Sole Book Manager</B>




<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="center" style="font-size: 10pt">TABLE OF CONTENTS


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="84%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD colspan="5" align="left">ARTICLE I. DEFINITIONS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD colspan="5" align="left">ARTICLE II. REVOLVING CREDIT FACILITY</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">2.1 Loans</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">2.2 Interest</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">2.3 Repayment and Line Termination</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">2.4 Mandatory Interim Principal Payments</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">2.5 Borrowing Procedure</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">2.6 Purpose and Use of Funds</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">2.7 Borrowing Base</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">2.8 Commitment Fee</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">2.9 Reduction of Credit Limit</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">2.10 Letters of Credit</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">2.11 Continuing Representations</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">2.12 Increase in Commitments</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD colspan="5" align="left">ARTICLE III. INTEREST</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">3.1 Interest</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.1.1 Applicable Rate</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.1.2 Election of Eurodollar Rate Loan</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.1.3 Interest Payment Dates</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">3.2 Compensation for Losses</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">3.3 Inability to Determine Rates</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">3.4 Increased Cost and Reduced Return; Capital Adequacy; Reserves on Eurodollar Rate Loans</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">3.5 Matters Applicable to all Requests for Compensation</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">3.6 Illegality</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">3.7 Definitions</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">3.8 Computation of Interest and Fees</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD colspan="5" align="left">ARTICLE IV. PAYMENT</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">4.1 Method of Payment</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">4.2 Pro Rata Treatment</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">4.3 Sharing of Payments, Etc</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">4.4 Non-Receipt of Funds by Agent</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">4.5 Return of Funds</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">4.6 Withholding Taxes</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">4.7 Withholding Tax Exemption</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD colspan="5" align="left">ARTICLE V. CONDITIONS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">5.1 Items to be Delivered by Borrower</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">5.2 Loans and Letters of Credit Under Facility</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">-i-
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="84%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="5" align="left">ARTICLE VI. REPRESENTATIONS AND WARRANTIES</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">6.1 Corporate Name; Trade Names</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">6.2 Chief Executive Office</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">6.3 Partnership and Corporate Existence</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">6.4 Partnership and Corporate Power and Authority; Validity</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">6.5 No Conflicting Agreements; No Consents</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">6.6 Share Ownership of Parent</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">6.7 EWC GP, EWC LP and Aviation</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">6.8 Ownership of Borrower</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">6.9 Location of Books and Records</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">6.10 Receivables, Inventory Free and Clear</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">6.11 Financial Statements</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">6.12 Litigation</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">6.13 Compliance with Laws</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">6.14 Judgments</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">6.15 Taxes</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">6.16 Title to Property</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">6.17 Consents</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">6.18 Full Disclosure</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">6.19 Solvency</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">6.20 Employee Relations</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">6.21 Employee Benefit Plan</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">6.22 Environmental Matters</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">6.23 Representations and Warranties Cumulative</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">6.24 No Default</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">6.25 Insurance</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">6.26 Margin Regulations; Investment Company Act; Public Utility Company Act</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD colspan="5" align="left">ARTICLE VII. COVENANTS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.1 Compliance Certificate</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.2 Authority</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.3 Books and Records; Inspection</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">7.3.1 Books and Records</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">7.3.2 Inspection</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.4 Existence and Maintenance of Properties</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.5 Annual Financial Statements</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">41</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.6 Interim Financial Statements</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.7 SEC Filings</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.8 Borrowing Base Reports</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">42</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.9 Aging Reports</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.10 Use of Proceeds</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.11 Notification of Contingent Liabilities</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.12 Notification of Material Changes</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.13 Notification Regarding Default</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.14 Payment of Taxes and Other Obligations</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">-ii-
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="84%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.15 Compliance with Laws</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.16 Compliance with Agreements</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.17 Fees, Costs and Expenses</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.18 Subordination Agreements</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.19 Change of Fiscal Year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.20 Employee Benefit Plans</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.21 Financial Covenants</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.22 No Liens; Inventory</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.23 Insurance</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.24 Sale of Assets</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.25 Dissolution; Liquidation; Merger</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.26 Limitation on Indebtedness</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">48</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.27 Limitation on Contingent Liabilities</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.28 Change in Business</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.29 Change in Management</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.30 Dividends, Distributions, Redemptions</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.31 Burdensome Agreements</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.32 Bonuses, Consulting Fees to Shareholders and Directors</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.33 Loans to Employees</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.34 Transactions with Affiliates</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.35 Acquisitions</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.36 Limitation on Investments</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.37 Prepayments</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.38 Amendments to Private Placement Debt</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.39 Further Assurances</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">7.40 Covenants Cumulative</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD colspan="5" align="left">ARTICLE VIII. EVENT OF DEFAULT</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">8.1 Event of Default</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD colspan="5" align="left">ARTICLE IX. REMEDIES</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">9.1 Refusal of Funding</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">9.2 Remedies</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">9.3 Enforcement Costs;
Application of Proceeds</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">9.4 Waiver of Notices</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">9.5 Setoff</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">9.6 Performance by Agent and/or Lenders</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">9.7 Non-waiver</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">9.8 Application of Payments</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD colspan="5" align="left">ARTICLE X. AGENT</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">10.1 Appointment and Authorization of Administrative Agent</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">10.2 Delegation of Duties</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">10.3 Liability of Administrative Agent</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">10.4 Reliance by Administrative Agent</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">10.5 Notice of Default</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">10.6 Credit Decision; Disclosure of Information by Administrative Agent</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">-iii-
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="84%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">10.7 Indemnification of Administrative Agent</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">10.8 Agent in its Individual Capacity</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">10.9 Successor Administrative Agent</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">10.10 Agent May File Proofs of Claim</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">10.11 Syndication Agent</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD colspan="5" align="left">ARTICLE XI. MISCELLANEOUS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">11.1 Effective Date; Termination</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">11.2 Notices Other Communications; Facsimile Copies</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">61</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">11.3 Use of Proceeds</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">11.4 Lender&#146;s Records; Account Statements</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">62</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">11.5 Indemnity</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">11.6 Non-applicability of Chapter&nbsp;346 of Texas Finance Code</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">11.7 Judgment Interest</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">11.8 Interest Limitation</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">64</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">11.9 Successors and Assigns</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">65</TD>
    <TD>&nbsp;</TD>

</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">11.10 Continuing Rights of Agent and Lenders in respect of Obligations</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">11.11 Fees, Costs and Expenses</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">11.12 Acceptance and Performance</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">11.13 Obligations</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">11.14 WAIVER OF TRIAL BY JURY</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">11.15 Copies Valid as Financing Statements</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">68</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">11.16 Governing Law</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">11.17 ENTIRE AGREEMENT</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">11.18 Amendments</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">11.19 Accounting Terms</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">69</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">11.20 Exhibits</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">11.21 Cumulative Rights</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">11.22 Severability</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">11.23 Multiple Counterparts</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">11.24 Survival</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">11.25 Intentionally Omitted</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">11.26 Confidentiality</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">70</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">11.27 Payments Set Aside</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">11.28 USA Patriot Act Notice</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">71</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="left" style="font-size: 10pt">SCHEDULES AND EXHIBITS



<P align="left" style="font-size: 10pt">6.7&nbsp;&nbsp;&nbsp;&nbsp;Subsidiary Information<BR>
6.12&nbsp;&nbsp;&nbsp;Pending Litigation<BR>
6.15&nbsp;&nbsp;&nbsp;Tax Returns or Filings<BR>
11.2&nbsp;&nbsp;&nbsp;Addresses for Notices


<P align="left" style="font-size: 10pt">Exhibit&nbsp;A&nbsp;&nbsp;&nbsp;Assignment and Assumption<BR>
Exhibit&nbsp;B&nbsp;&nbsp;&nbsp;Form of Revolving Note<BR>
Exhibit&nbsp;C&nbsp;&nbsp;&nbsp;Form of Guaranty


<P align="center" style="font-size: 10pt">-iv-
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt"><B>CREDIT AGREEMENT</B>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Credit Agreement dated as of August 27, 2004 is executed and entered into
by and among ENCORE WIRE LIMITED, a Texas limited partnership ("Borrower"), BANK
OF AMERICA, N.A. ("Bank of America") and WELLS FARGO BANK, NATIONAL ASSOCIATION
("Wells Fargo"), in their individual capacities as "Lenders" (as such term is
defined herein), and BANK OF AMERICA, N.A., as Administrative Agent.

<P align="center" style="font-size: 10pt">RECITALS



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Borrower has requested that the Lenders provide a revolving credit
agreement, and the Lenders are willing to do so on the terms and conditions set
forth herein.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In consideration of the mutual covenants and agreements herein contained,
the parties hereto covenant and agree as follows:


<P align="center" style="font-size: 10pt">ARTICLE I. DEFINITIONS



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following definitions shall apply throughout this Agreement:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 &#147;Administrative Questionnaire&#148; means an Administrative Questionnaire
in a form supplied by Agent.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 &#147;Affiliate&#148; includes any Person (i)&nbsp;that directly or indirectly
controls or is controlled by Borrower (including without limitation all
Subsidiaries), or is under common control with Borrower, or (ii)&nbsp;that directly
or indirectly owns or holds five percent (5%) or more of any class of Voting
Stock of Borrower or (iii)&nbsp;five percent (5%) or more of the Voting Stock of
which is directly or indirectly owned or held by Borrower or (iv)&nbsp;who is an
officer, director or partner of Borrower.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 &#147;Affiliate Subordination Agreement&#148; means a subordination agreement
respecting officers, directors, shareholders or Affiliates of Borrower as
prescribed by paragraph 7.18.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 &#147;Agent&#148; or &#147;Administrative Agent&#148; means Bank of America in its
capacity as administrative agent under any of the Loan Documents, or any
successor administrative agent.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 &#147;Agent-Related Persons&#148; means Agent, together with its Affiliates, and
the officers, directors, employees, agents and attorneys-in-fact of such
Persons and Affiliates.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 &#147;Aggregate Commitments&#148; means the Commitments of all the Lenders. As
of the Effective Date, the Aggregate Commitments is $85,000,000.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7 &#147;Agreement&#148; means this Credit Agreement and all exhibits and
schedules, and any extension, amendment or modification thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8 &#147;Applicable Margin&#148; means the following percentages per annum, based
upon the Leverage Ratio:


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>APPLICABLE</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>APPLICABLE</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>MARGIN FOR</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>MARGIN FOR</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>LEVERAGE</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>BASE RATE</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>EURODOLLAR</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>COMMITMENT</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>LEVEL</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>RATIO</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>LOANS</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>RATE LOANS</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>FEE</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD align="center"><DIV style="margin-left:10px; text-indent:-10px">1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Less than or equal</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.875</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.200</TD>
    <TD nowrap>%</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD align="center"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">to 1.50 to 1.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="padding-top: 0em">
    <TD align="center"><DIV style="margin-left:10px; text-indent:-10px">2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Greater than 1.50</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.125</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.250</TD>
    <TD nowrap>%</TD>
</TR>

<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">to 1.0 and less</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">than or equal to</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.25 to 1.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="padding-top: 0em; background: #eeeeee">
    <TD align="center"><DIV style="margin-left:10px; text-indent:-10px">3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Greater than 2.25</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.250</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.250</TD>
    <TD nowrap>%</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD align="center"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">to 1.0 and less</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD align="center"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">than or equal to</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD align="center"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.00 to 1.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="padding-top: 0em">
    <TD align="center"><DIV style="margin-left:10px; text-indent:-10px">4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Greater than 3.00</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.250</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">1.750</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0.375</TD>
    <TD nowrap>%</TD>
</TR>

<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">to 1.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Applicable Margin shall be measured and determined according to the
quarterly consolidated financial statements delivered to Agent under paragraph
7.6. Any adjustment in the Applicable Margin after the Effective Date shall be
deemed effective as of the date the financial statements referred to in the
immediately preceding sentence are due. The Applicable Margin in effect from
the Closing Date until the first day following the receipt by the Agent of the
quarterly consolidated financial statements referred to above for the quarter
ending September&nbsp;30, 2004 shall be determined based upon Pricing Level 1.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9 &#147;Approved Fund&#148; means any Fund that is administered or managed by (a)
a Lender, (b)&nbsp;an Affiliate of a Lender or (c)&nbsp;an entity or an Affiliate of an
entity that administers or manages a Lender.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.10 &#147;Assignment and Assumption&#148; means an Assignment and Assumption in
substantially the form of Exhibit&nbsp;A hereto.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.11 &#147;Attorney Costs&#148; means and includes all reasonable fees, expenses and
disbursements of any law firm or other external counsel.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.12 &#147;Auto-Extension Letter of Credit&#148; has the meaning specified in
paragraph 2.10(b)(iii).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.13 &#147;Availability&#148; at any time means (i)&nbsp;the lesser of the Borrowing Base
and the Aggregate Commitments, minus (ii)&nbsp;the aggregate principal amount owing
under the Facility minus (iii)&nbsp;the L/C Obligations.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.14 &#147;Aviation&#148; means EWC Aviation, Inc., a Texas corporation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.15 &#147;Bank of America&#148; means Bank of America, N.A., a national banking
association, in its individual capacity as a Lender.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.16 &#147;Base Rate&#148; shall have the meaning specified in paragraph 3.7.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.17 &#147;Base Rate Loan&#148; shall have the meaning specified in paragraph 3.7.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.18 &#147;Borrower&#148; means Encore Wire Limited, a limited partnership organized
under the laws of the State of Texas, whose chief executive office is located
at 1410 Millwood Road, P.O. Box 1149, McKinney, Texas 75069-0545.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.19 &#147;Borrowing Base&#148; means the amount determined from time to time
pursuant to paragraph 7.8 which is equal to eighty-five percent (85%) of the
net amount of Eligible Accounts plus (ii)&nbsp;sixty-five percent (65%) of the net
amount of Eligible Inventory.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.20 &#147;Borrowing Base Report&#148; means a Borrowing Base Report prescribed by
paragraph 7.8.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.21 &#147;Business Day&#148; means any calendar day except Saturday, Sunday and
those legal public holidays specified in 5 U.S.C. &#167;6103(a), as may be amended
from time to time.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.22 &#147;Capital Expenditures&#148; shall have the meaning specified in paragraph
7.21(b).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.23 &#147;Cash Collateralize&#148; shall have the meaning specified in paragraph
2.10(g).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.24 &#147;Change of Control&#148; means (i)&nbsp;the Parent shall cease to own, directly
or indirectly, all of the capital ownership of EWC GP and EWC LP, (ii)&nbsp;EWC GP
shall cease to be the sole general partner of the Borrower or (iii)&nbsp;EWC LP
shall cease to be the sole limited partner of the Borrower.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.25 &#147;Code&#148; means the Uniform Commercial Code in effect in the State of
Texas.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.26 &#147;Compensation Period&#148; shall have the meaning specified in paragraph
4.4(b).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.27 &#147;Commitment&#148; means, as to any Lender, the obligation of such Lender
to make or continue Loans and incur or participate in L/C Obligations hereunder
in an aggregate principal amount at any one time outstanding up to but not
exceeding the amount set forth opposite the name of such Lender on the
signature pages of this Agreement under the heading &#147;Commitment&#148; or, if such
Lender is a party to an Assignment and Acceptance, the amount of the
&#147;Commitment&#148; set forth in the most recent Assignment and Acceptance of such
Lender, as the same may be reduced or terminated pursuant to paragraph 2.9 or
9.2 or increased pursuant to paragraph 2.12.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.28 &#147;Commitment Percentage&#148; means, as to any Lender, the percentage
equivalent of a fraction, the numerator of which is the amount of the
outstanding Commitment of such Lender (or, if such Commitment has terminated or
expired, the outstanding principal amount of the Loans and L/C Obligations of
such Lender) and the denominator of which is the Aggregate


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<P align="left" style="font-size: 10pt">Commitments (or, if the Aggregate Commitments have terminated or expired,
the aggregate outstanding principal amount of the Loans and L/C Obligations of
all Lenders), as adjusted from time to time in accordance with paragraph 11.9.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.29 &#147;Contract Term&#148; means the period beginning on the Effective Date and
continuing through August&nbsp;27, 2009.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.30 &#147;Contractual Obligation&#148; means, as to any Person, any provision of
any security issued by such Person or of any agreement, instrument or other
undertaking to which such Person is a party or by which it or any of its
property is bound.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.31 &#147;Debtor Relief Laws&#148; means the Bankruptcy Code of the United States,
and all other liquidation, conservatorship, bankruptcy, assignment for the
benefit of creditors, moratorium, rearrangement, receivership, insolvency,
reorganization, or similar debtor relief Laws of the United States or other
applicable jurisdictions from time to time in effect and affecting the rights
of creditors generally.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.32 &#147;Default&#148; means an Event of Default or the occurrence of an event or
condition which with notice or lapse of time or both would become an Event of
Default.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.33 &#147;Default Rate&#148; means (a)&nbsp;when used with respect to Obligations other
than L/C Fees an interest rate equal to (i)&nbsp;the Base Rate plus (ii)&nbsp;the
Applicable Margin, if any, applicable to Base Rate Loans plus (iii)&nbsp;3% per
annum; provided, however, that with respect to a Eurodollar Rate Loan, the
Default Rate shall be an interest rate equal to the interest rate (including
any Applicable Margin) otherwise applicable to such Loan plus 3% per annum, and
(b)&nbsp;when used with respect to L/C Fees, a rate equal to the interest rate
otherwise applicable to such Letter of Credit plus 3% per annum, in all cases
to the fullest extent permitted by applicable Laws.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.34 &#147;Defaulting Lender&#148; means any Lender that (a)&nbsp;has failed to fund any
portion of the Loans or participations in L/C Obligations required to be funded
by it hereunder within one Business Day of the date required to be funded by it
hereunder, (b)&nbsp;has otherwise failed to pay over to Agent or any other Lender
any other amount required to be paid by it hereunder within one Business Day of
the date when due, unless the subject of a good faith dispute, or (c)&nbsp;has been
deemed insolvent or become the subject of a bankruptcy or insolvency
proceeding.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.35 &#147;Dollars&#148; and &#147;$&#148; means lawful money of the United States of America.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.36 &#147;EBITDA&#148; shall have the meaning prescribed in paragraph 7.21(b).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.37 &#147;Effective Date&#148; means the effective date specified in the preamble
of this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.38 &#147;Eligible Accounts&#148; means the net amount of the accounts of Borrower
which meet each of the following criteria: (a)&nbsp;payment terms are within
Borrower&#146;s ordinary course of business, and the account is aged less than one
hundred twenty (120)&nbsp;days from the date of invoice and arose in the ordinary
course of business from the bona fide sale of Inventory under an enforceable
agreement, and such Inventory has been fully delivered thereunder; (b)&nbsp;the
title of Borrower to the account is absolute and is not subject to any
assignment, claim, lien or security


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<P align="left" style="font-size: 10pt">interest; (c)&nbsp;the full amount shown on the books of Borrower and on the
invoice evidencing the account, and on the Borrowing Base Report delivered to
Agent, is owing to Borrower, and no partial payment has been made thereon,
except as otherwise may be shown on such invoice and disclosed to Agent; (d)
the account is not subject to any dispute, claim of reduction, counterclaim,
set-off, recoupment or any claim for credits, allowances or adjustments by the
account debtor, except for customary discounts allowed for prompt payment as
may be noted on the invoice evidencing such account, or as has been disclosed
to and approved by Agent; (e)&nbsp;the account is not an account that Agent in its
sole discretion determines to be an unacceptable credit risk at the time of
such determination; (f)&nbsp;the account debtor has not rejected, returned or
refused to accept any Inventory relating to the transaction from which the
account arose; (g)&nbsp;the account does not arise out of a contract or purchase
order that, by its terms, forbids assignment, conditions assignment on consent
by the account debtor or otherwise purports to make an assignment thereof
conditional, void or unenforceable; and (h)&nbsp;Borrower has not received any
notice and has no knowledge of the dissolution or termination of existence of
any corporate account debtor, or the insolvency, business failure or the filing
of a petition in bankruptcy by or against any account debtor. Notwithstanding
the foregoing, the total amount at any time includable in Eligible Accounts
with respect to any account debtor shall not exceed an amount equal to ten
percent (10.0%) of the aggregate amount of all of Borrower&#146;s accounts which
otherwise meet all criteria for being Eligible Accounts (including those of
such account debtor). Eligible Accounts shall not include any of the following:
&#147;contra accounts;&#148; accounts subject to credit memos or accounts in connection
with &#147;C.O.D.&#148; sales, &#147;bill and hold&#148; sales, guaranteed sales, consignment sales
or other special billing arrangements; amounts, if any, excludable in respect
of returned inventory; amounts owing by any Affiliate; all amounts owing by any
account debtor with respect to which more than twenty five percent (25.0%) of
its aggregate amount of accounts owing to Borrower is aged one hundred twenty
(120)&nbsp;or more days from the date of invoice; all amounts owing by the United
States or any state or local government (unless otherwise expressly agreed by
Agent); amounts owing by any account debtor whose principal place of business
is located outside the United States.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.39 &#147;Eligible Assignees&#148; shall have the meaning specified in paragraph
11.9(g).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.40 &#147;Eligible Inventory&#148; means copper raw material inventory and finished
goods inventory owned by Borrower which is wire and cable inventory but unless
otherwise agreed by Agent, does not in any event include (a)&nbsp;Inventory which is
subject to any security interest, lien, encumbrance or claim by any Person, (b)
Inventory acquired by Borrower other than in the ordinary course of business,
and (c)&nbsp;Inventory which is damaged or obsolete or which otherwise is not in
good saleable condition. Eligible Inventory shall be valued at the lesser of
its cost or current market value, in a manner acceptable to Agent.
Notwithstanding anything herein to the contrary, in no event shall
work-in-progress be included in Eligible Inventory.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.41 &#147;Environmental Damages&#148; means all costs, judgments, good faith
settlements, claims, damages, losses, penalties, fines, liabilities,
encumbrances, liens, costs, and expenses, of whatever kind or nature,
contingent or otherwise, matured or unmatured, foreseeable or unforeseeable,
and any attorneys&#146; fees costs and expenses in connection therewith, which are
incurred at any time as a result of the handling of Hazardous Materials, or the
existence of conditions giving rise to a violation of Environmental
Requirements resulting from Borrower&#146;s activities, including without limitation
(i)&nbsp;all costs incurred in connection with the investigation


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<P align="left" style="font-size: 10pt">or remediation of Hazardous Materials or violations of Environmental
Requirements which are necessary to comply with any Environmental Requirements,
including, fees incurred for the services of attorneys, consultants,
contractors, experts and laboratories, and all other costs incurred in the
preparation of any feasibility studies or reports or the performance of any
cleanup, remediation, removal, response, abatement, containment, closure,
restoration or monitoring work, (ii)&nbsp;damages for personal injury, injury to
property or natural resources occurring on or off of affected real property,
consequential damages, the cost of demolition and rebuilding of any
improvements on real property, and interest and penalties, and (iii)&nbsp;liability
to any third party or governmental agency to reimburse, indemnify or provide
contribution to such person or agency.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.42 &#147;Environmental Requirements&#148; means all legislative, regulatory,
administrative and common law requirements relating to the protection of human
health and safety or the environment, including, without limitation, applicable
present and future statutes, regulations, rules, ordinances, codes, licenses,
permits, judgments, orders, judicial opinions, approvals, authorizations,
concessions, franchises, and similar items issued or promulgated by
governmental agencies, departments, commissions, boards, bureaus, or
instrumentalities of the United States, any state or any political
subdivisions.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.43 &#147;ERISA&#148; means the Employee Retirement Income Security Act of 1974, as
amended, together with all regulations issued pursuant thereto.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.44 &#147;ERISA Affiliate&#148; means any Person which, together with Borrower,
would be treated as a single employer under Section&nbsp;4001 of ERISA or Section
414 of the IRC.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.45 &#147;Eurodollar Base Rate&#148; has the meaning specified in paragraph 3.7.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.46 &#147;Eurodollar Business Day&#148; has the meaning specified in paragraph 3.7


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.47 &#147;Eurodollar Rate&#148; has the meaning specified in paragraph 3.7.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.48 &#147;Eurodollar Reserve Percentage&#148; has the meaning specified in paragraph 3.7.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.49 &#147;Eurodollar Rate Loan&#148; has the meaning specified in paragraph 3.7.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.50 &#147;Event of Default&#148; shall have the meaning specified in paragraph 8.1.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.51 &#147;EWC GP&#148; means EWC GP Corp., a Delaware corporation and the sole
general partner of Borrower.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.52 &#147;EWC LP&#148; means EWC LP Corp., a Delaware corporation and the sole
limited partner of Borrower.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.53 &#147;Facility&#148; means the revolving credit facility established by this
Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.54 &#147;Federal Funds Rate&#148; means, for any day, the rate per annum equal to
the weighted average of the rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by Federal funds brokers on such
day, as published by the


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<P align="left" style="font-size: 10pt">Federal Reserve Bank of New York on the Business Day next succeeding such
day, provided that (a)&nbsp;if such day is not a Business Day, the Federal Funds
Rate for such day shall be such rate on such transactions on the next preceding
Business Day as so published on the next succeeding Business Day, and (b)&nbsp;if no
such rate is so published on such next succeeding Business Day, the Federal
Funds Rate for any day shall be the average rate (rounded upwards, if
necessary, to a whole multiple of 1/100 of 1%) charged to Bank of America on
such day on such transactions as determined by Agent.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.55 &#147;Fiscal Quarter&#148; means any of the following periods of three calendar
months: (i)&nbsp;January through March, (ii)&nbsp;April through June, (iii)&nbsp;July through
September or (iv)&nbsp;October through December, respectively.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.56 &#147;Fixed Charge Ratio&#148; shall have the meaning prescribed in paragraph
7.21(b).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.57 &#147;FRB&#148; means the Board of Governors of the Federal Reserve System of
the United States.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.58 &#147;Fund&#148; means any Person (other than a natural person) that is (or
will be) engaged in making, purchasing, holding or otherwise investing in
commercial loans and similar extensions of credit in the ordinary course of its
business.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.59 &#147;Funded Debt&#148; shall have the meaning prescribed in paragraph 7.21(b).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.60 &#147;Governmental Authority&#148; means any nation or government, any state,
provincial or political subdivision thereof and any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.61 &#147;Guarantor(s)&#148; means each of Parent, EWC GP, EWC LP, Aviation and
each other Person which from time to time has guaranteed the Obligations or a
part thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.62 &#147;Guaranty(ies)&#148; means each guaranty agreement(s) executed by each
Guarantor, substantially in the form <B>Exhibit&nbsp;C </B>hereto.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.63 &#147;GAAP&#148; means generally accepted accounting principles as promulgated
by the American Institute of Certified Public Accountants, consistently
applied). The requirement that such principles be consistently applied means
that the accounting principles applied in a current period are comparable in
all material respects to those applied in a preceding period.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.64 &#147;Hazardous Materials&#148; means any chemical substances, pollutants,
contaminants, materials, or wastes, or combinations thereof, whether solid,
liquid or gaseous in nature the presence of which requires or may require
investigation or remediation under any federal, state or local statute,
regulations, ordinance, order, action, policy or common law or which poses or
threatens to pose a hazard to the health or safety of persons on or about real
property affected by Borrower&#146;s activities, including without limitation,
material (i)&nbsp;which is or becomes defined as &#147;hazardous waste,&#148; &#147;hazardous
substance,&#148; &#147;pollutant or contaminant&#148; under any Environmental Requirements,
including without limitation, the Comprehensive Environmental Response
Compensation and Liability Act (42 U.S.C. section 9601 et seq.) or the Resource
Conservation and Recovery Act (42 U.S.C. section 6901 et seq.) or (ii)&nbsp;which
contains gasoline, diesel fuel or


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<P align="left" style="font-size: 10pt">other petroleum hydrocarbons, polychlorinated biphenyls (PCBs), asbestos,
urea formaldehyde from insulation, or radon gas.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.65 &#147;Increase Closing Date&#148; shall have the meaning specified in paragraph 2.12(b).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.66 &#147;Indemnitees&#148; shall have the meaning specified in paragraph 11.5.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.67 &#147;Interest Payment Date&#148; shall have the meaning specified in paragraph 3.7.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.68 &#147;Interest Period&#148; shall have the meaning specified in paragraph 3.7.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.69 &#147;Inventory&#148; means all of Borrower&#146;s inventory now or hereafter owned
or acquired, including raw materials, work in process, finished goods and all
other goods held for sale or lease, wherever located. &#147;Inventory&#148; also
includes returned inventory.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.70 &#147;Issuing Bank&#148; means Bank of America, Wells Fargo or such other
Lender which is a commercial bank as Borrower and Administrative Agent may
mutually designate from time to time which agrees to be the issuer of Letters
of Credit, in its capacity as issuer of Letters of Credit hereunder, or any
successor issuer of Letters of Credit hereunder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.71 &#147;Issuer Documents&#148; means with respect to any Letter of Credit, the
L/C Application, and any other document, agreement and instrument entered into
by the applicable Issuing Bank and Borrower or in favor of such Issuing Bank
and relating to any such Letter of Credit.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.72 &#147;IRC&#148; means the Internal Revenue Code of 1986, as amended, and
regulations promulgated thereunder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.73 &#147;Laws&#148; means, collectively, all international, foreign, Federal,
state and local statutes, treaties, rules, guidelines, regulations, ordinances,
codes and administrative or judicial precedents or authorities, including the
interpretation or administration thereof by any Governmental Authority charged
with the enforcement, interpretation or administration thereof, and all
applicable administrative orders, directed duties, requests, licenses,
authorizations and permits of, and agreements with, any Governmental Authority,
in each case whether or not having the force of law.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.74 &#147;Lender&#148; and &#147;Lenders&#148; means each of Bank of America and Wells Fargo,
in their individual capacities as lenders hereunder, and each other lending
institution which may from time to time become a party hereto or any successor
or assignee of any thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.75 &#147;Lending Office&#148; means, as to any Lender, the office or offices of
such Lender described as such in such Lender&#146;s Administrative Questionnaire, or
such other office or offices as a Lender may from time to time notify Borrower
and Agent.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.76 &#147;L/C Advance&#148; means, with respect to each Lender, such Lender&#146;s
funding of its participation in any L/C Borrowing in accordance with its
Commitment Percentage.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.77 &#147;L/C Application&#148; means an application and agreement for the issuance
or amendment of a Letter of Credit in the form from time to time in use by any
Issuing Bank.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.78 &#147;L/C Borrowing&#148; means an extension of credit resulting from a drawing
under any Letter of Credit which has not been reimbursed on the date when made
or refinanced as a Loan.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.79 &#147;L/C Credit Extension&#148; means, with respect to any Letter of Credit,
the issuance thereof or extension of the expiry date thereof, or the increase
of the amount thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.80 &#147;L/C Expiration Date&#148; means the day that is thirty days prior to the
last day of the Contract Term then in effect (or, if such day is not a Business
Day, the next preceding Business Day).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.81 &#147;L/C Fee&#148; has the meaning specified in paragraph 2.10(i).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.82 &#147;L/C Obligations&#148; means, as at any date of determination, the
aggregate undrawn amount of all outstanding Letters of Credit plus the
aggregate of all Unreimbursed Amounts, including all L/C Borrowings. For all
purposes of this Agreement, if on any date of determination a Letter of Credit
has expired by its terms but any amount may still be drawn thereunder by reason
of the operation of Rule&nbsp;3.14 of the ISP, such Letter of Credit shall be deemed
to be &#147;outstanding&#148; in the amount so remaining available to be drawn.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.83 &#147;L/C Sublimit&#148; means an amount equal to $5,000,000. The L/C Sublimit
is part of, and not in addition to, the Aggregate Commitments.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.84 &#147;Letter of Credit&#148; means any standby letter of credit issued by any
Issuing Bank for the account of Borrower pursuant to this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.85 &#147;Leverage Ratio&#148; shall have the meaning prescribed in paragraph
7.21(b).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.86 &#147;Loan Documents&#148; means this Agreement, the Revolving Notes, the
Issuer Documents, the Guaranties and any other documents or agreements executed
in connection therewith, and also includes any and all renewals, extensions,
modifications or amendments of any of the foregoing.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.87 &#147;Loan Party&#148; means (a)&nbsp;Borrower, (b)&nbsp;Parent, and (c)&nbsp;any other Person
who is or becomes a party to any agreement, document or instrument that
guarantees or secures payment or performance of the Obligations or any part
thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.88 &#147;Loans&#148; means as specified in paragraph 2.1, and &#147;Loan&#148; means any of
such Loans.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.89 &#147;Material Adverse Effect&#148; means (i)&nbsp;a materially adverse effect on
the business, assets, operations, prospects or condition, financial or
otherwise, of Borrower, individually, or Parent and Borrower, on a consolidated
basis taken as a whole, (ii)&nbsp;a material impairment of the ability of any Loan
Party to perform any obligations under the Loan Documents or (iii)&nbsp;a


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<P align="left" style="font-size: 10pt">materially adverse effect on the rights and remedies of the Agent or the
Lenders under the Loan Documents.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.90 &#147;Maximum Rate&#148; means the greater of (i)&nbsp;the &#147;weekly ceiling&#148; as
defined in Section&nbsp;303.003 of the Texas Finance Code, as amended, or (ii)&nbsp;the
maximum rate of interest permitted from day to day by any other applicable
state or federal law.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.91 &#147;Non-Extension Notice Date&#148; has the meaning specified in paragraph
2.10(b)(iii).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.92 &#147;Obligations&#148; means all advances to, and debts, liabilities,
obligations, covenants and duties of, any Loan Party arising under any Loan
Document or otherwise with respect to any Loan or Letter of Credit, whether
direct or indirect (including those acquired by assumption), absolute or
contingent, due or to become due, now existing or hereafter arising and
including interest and fees that accrue after the commencement by or against
any Loan Party or any Affiliate thereof of any proceeding under any Debtor
Relief Laws naming such Person as the debtor in such proceeding, regardless of
whether such interest and fees are allowed claims in such proceeding.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.93 &#147;Outstanding Amount&#148; means (i)&nbsp;with respect to Loans on any date, the
aggregate outstanding principal amount thereof after giving effect to any
borrowings and prepayments or repayments of Loans occurring on such date; and
(ii)&nbsp;with respect to any L/C Obligations on any date, the amount of such L/C
Obligations on such date after giving effect to any L/C Credit Extension
occurring on such date and any other changes in the aggregate amount of the L/C
Obligations as of such date, including as a result of any reimbursements of
outstanding unpaid drawings under any Letters of Credit or any reductions in
the maximum amount available for drawing under Letters of Credit taking effect
on such date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.94 &#147;Note Purchase Agreement&#148; means that certain Note Purchase Agreement,
dated as of August&nbsp;1, 2004, among Borrower, Parent and the purchasers party
thereto, in the form in effect as of the date hereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.95 &#147;Parent&#148; means Encore Wire Corporation, a corporation organized under
the laws of the State of Delaware, and the sole owner of EWC GP and EWC LP.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.96 &#147;Parent Voting Stock&#148; means sufficient shares of Parent (however
designated) having ordinary voting power for the election of a majority of the
members of its board of directors (not including shares having such power only
in the event of a contingency).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.97 &#147;Participant&#148; shall have the meaning specified in paragraph 11.9(d).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.98 &#147;PBGC&#148; means the Pension Benefit Guaranty Corporation or any entity
succeeding to any or all of its functions under ERISA.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.99 &#147;Permitted Encumbrances&#148; shall mean any liens arising by statute for
taxes not yet due and payable, and subject to paragraph 8.1, any of the
following so long as the validity or amount thereof is being contested in good
faith and by appropriate and lawful proceedings diligently conducted, reserve
or other appropriate provision (if any) required by GAAP shall have been made,
levy and execution thereon shall have been stayed and continue to be stayed,


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<P align="left" style="font-size: 10pt">and <I>provided </I>that any of such encumbrances do not in the aggregate
materially detract from the value of Borrower&#146;s property, or materially impair
the use thereof in the operation of its business: claims and liens for taxes
due and payable; claims and liens upon, and defects of title to, personal
property, including any attachment of personal property or other legal process
prior to adjudication of a dispute on the merits; claims and liens of
mechanics, materialmen, warehousemen, carriers, landlords, or other like liens;
and adverse judgments on appeal.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.100 &#147;Person&#148; means any individual, corporation, joint venture, generator
limited partnership, trust, unincorporated organization or governmental entity
or agency.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.101 &#147;Plan&#148; means any (i)&nbsp;any &#147;employee benefit plan,&#148; as defined in
Section&nbsp;3(3) of ERISA, established or maintained by Borrower or any ERISA
Affiliate now or during any of the preceding six years, and (ii)&nbsp;any other plan
established or maintained now or during any of the preceding six years by
Borrower or any ERISA Affiliate for its employees which is covered by Title IV
of ERISA or is subject to the minimum funding standards under Section&nbsp;412 of
the IRC.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.102 &#147;Principal Office&#148; means the principal office of Agent in Dallas,
Texas, presently located at 901 Main Street, 7th Floor, Dallas, Texas 75202, or
such other address as Agent may from time to time notify Borrower and Lenders.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.103 &#147;Private Placement Debt&#148; means unsecured private placement
indebtedness of the Borrower in an aggregate principal amount not to exceed
$75,000,000 issued pursuant to (a)&nbsp;the terms and conditions set forth in that
certain Note Purchase Agreement and (b)&nbsp;any other documentation containing
terms and conditions substantially similar to the Note Purchase Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.104 &#147;Prohibited Transaction&#148; means any transaction described in Section
406 of ERISA which is not exempt under Section&nbsp;408 of ERISA and any transaction
described in Section 4975(c) of the IRC which is not exempt under Section
4974(c)(2) or Section 4975(d) of the IRC, or by the transitional rules of
Section 414(c) and Section 2003(c) of ERISA.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.105 &#147;Receivables&#148; means all present and future accounts, chattel paper,
contract rights, documents, instruments, deposit accounts, and general
intangibles now or hereafter owned, held, or acquired by Borrower and includes,
without limitation, all of the following: all of Borrower&#146;s accounts
receivable, including all rights to payment for goods sold or leased or for
services rendered, whether or not earned by performance (and in any case where
an account arises from the sale of goods, the interest of Borrower in such
goods); lease receivables; license receivables; notes receivable; all other
rights to receive payments of money from any Person; documents of title;
warehouse receipts; Borrower&#146;s right, title and interest under equipment
leases; Borrower&#146;s rights under any service, lease rental, consulting or
similar agreements; trademarks, trade names and service marks; rights or claims
under contracts; all tax refunds or claims for tax refunds; books of account,
customer lists and other records relating in any way to any of the foregoing.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.106 &#147;Reportable Event&#148; means (i)&nbsp;any transaction described in Section
406 of ERISA or the regulations thereunder for which the 30-day notice is not
waived by said regulations, (ii)&nbsp;a


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<P align="left" style="font-size: 10pt">withdrawal from a plan described in Section&nbsp;4063 or 4064 of ERISA, or
(iii)&nbsp;a cessation of operations described in Section&nbsp;4062(f) of ERISA.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.107 &#147;Required Lenders&#148; means, at any date of determination, (a)&nbsp;if there
are only two Lenders, Lenders having 100% of the Aggregate Commitments (or, if
the Commitment of each Lender to make Loans and the obligation of the Issuing
Bank to make L/C Credit Extensions shall have terminated or expired, the Total
Outstandings) and (b)&nbsp;if there are more than two Lenders, Lenders having in
aggregate at least 66-2/3% of the Aggregate Commitments (or, if the Commitment
of each Lender to make Loans and the obligation of the Issuing Bank to make L/C
Credit Extensions shall have terminated or expired, the Total Outstandings);
provided that the Commitment of, and the portion of the Total Outstandings held
or deemed held by, any Defaulting Lender shall be excluded for purposes of
making a determination of Required Lenders.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.108 &#147;Responsible Officer&#148; means the chief executive officer, president,
chief financial officer, treasurer or assistant treasurer of a Loan Party. Any
document delivered hereunder that is signed by a Responsible Officer of a Loan
Party shall be conclusively presumed to have been authorized by all necessary
corporate, partnership and/or other action on the part of such Loan Party and
such Responsible Officer shall be conclusively presumed to have acted on behalf
of such Loan Party.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.109 &#147;Revolving Notes&#148; means the promissory notes executed by Borrower
payable to the order of a Lender evidencing loans under the Facility, as
provided in paragraph 2.1 and in the form attached hereto as <B>Exhibit&nbsp;B</B>, and
includes any and all renewals, extensions, amendments or modifications thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.110 &#147;Subsidiaries&#148; at any time means all subsidiary corporations of the
Parent or Borrower, as the case may be, that would be appropriate for inclusion
in either consolidating or consolidated financial statements of the Parent or
Borrower, as the case may be, determined according to GAAP, and &#147;Subsidiary&#148;
means any of such corporations.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.111 &#147;Swap Contract&#148; means (a)&nbsp;any and all rate swap transactions, basis
swaps, credit derivative transactions, forward rate transactions, commodity
swaps, commodity options, forward commodity contracts, equity or equity index
swaps or options, bond or bond price or bond index swaps or options or forward
bond or forward bond price or forward bond index transactions, interest rate
options, forward foreign exchange transactions, cap transactions, floor
transactions, collar transactions, currency swap transactions, cross-currency
rate swap transactions, currency options, spot contracts, or any other similar
transactions or any combination of any of the foregoing (including any options
to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b)&nbsp;any and all
transactions of any kind, and the related confirmations, which are subject to
the terms and conditions of, or governed by, any form of master agreement
published by the International Swaps and Derivatives Association, Inc., any
International Foreign Exchange Master Agreement, or any other master agreement
(any such master agreement, together with any related schedules, a &#147;Master
Agreement&#148;), including any such obligations or liabilities under any Master
Agreement.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.112 &#147;Swap Obligations&#148; means any and all obligations owed by any Loan
Party to any Lender or any Affiliate in respect of a Swap Contract.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.113 &#147;Swap Termination Value&#148; means, in respect of any one or more Swap
Contracts, after taking into account the effect of any legally enforceable
netting agreement relating to such Swap Contracts, (a)&nbsp;for any date on or after
the date such Swap Contracts have been closed out and termination value(s)
determined in accordance therewith, such termination value(s), and (b)&nbsp;for any
date prior to the date referenced in clause (a), the amount(s) determined as
the mark-to-market value(s) for such Swap Contracts, as determined based upon
one or more mid-market or other readily available quotations provided by any
recognized dealer in such Swap Contracts (which may include a Lender or any
Affiliate of a Lender).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.114 &#147;Total Outstandings&#148; means the aggregate Outstanding Amount of all
Loans and all L/C Obligations.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.115 &#147;Tranche&#148; shall have the meaning specified in paragraph 3.7.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.116 &#147;Unreimbursed Amounts&#148; shall have the meaning specified in paragraph
2.10(c)(i).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.117 &#147;Unused Portion&#148; means an amount equal to the result of (a)&nbsp;the
Aggregate Commitments minus (b)&nbsp;the sum of (i)&nbsp;the outstanding Loans and (ii)
the outstanding L/C Obligations.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.118 &#147;Wells Fargo&#148; means Wells Fargo Bank, National Association, in its
individual capacity as a Lender.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General terms. Unless expressly provided otherwise, any term which is
defined by the Code shall have the same meaning, wherever used in this
Agreement, as is prescribed by the Code.


<P align="center" style="font-size: 10pt">ARTICLE II. REVOLVING CREDIT FACILITY



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 Loans. Subject to and on the terms and conditions provided in this
Agreement, each Lender hereby approves a revolving credit facility and
severally agrees to make one or more loans to Borrower from time to time during
the Contract Term in the aggregate amount up to such Lender&#146;s Commitment
Percentage times the Availability. Borrower may borrow and repay amounts from
time to time under the Facility, subject in all respects to the terms of this
Agreement. Loans from time to time made by Lenders to Borrower under the
Facility, and all accrued interest thereon, shall be payable as provided in
this Agreement and additionally evidenced by the Revolving Notes. Such loans
are referred to herein individually as a &#147;Loan&#148; and collectively as the
&#147;Loans&#148;.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Interest. The unpaid principal from day to day outstanding under the
Facility shall bear interest as provided in Article&nbsp;III.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 Repayment and Line Termination. Borrower shall make all payments with
respect to the Loans to Agent for the account of the Lenders pursuant to the
terms of payment as


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<P align="left" style="font-size: 10pt">provided in Article&nbsp;IV. All unpaid principal and accrued interest under
the Facility shall be payable as follows: Accrued interest shall be payable as
provided in paragraph 3.1.3.; subject to Lender&#146;s rights under Article&nbsp;IX, all
unpaid principal borrowed under the Facility and all unpaid accrued interest
thereon, and all other amounts payable hereunder relative to the Facility,
shall be due and payable to Agent and/or Lenders in full, and the Facility
shall terminate, on the last day of the Contract Term. To the extent that any
accrued interest is not timely paid when due, Agent may at its option (but with
no obligation to do so), debit the amount thereof to, and collect same from,
any account maintained by Borrower with Agent, or add such amount to the unpaid
principal due by Borrower under the Facility.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 Mandatory Interim Principal Payments. If at any time, from time to
time, the Total Outstandings exceeds the Availability, Borrower shall make an
immediate payment of principal under the Facility in an amount not less than
the amount of such excess. All such amounts, if any, payable by Borrower shall
be deemed to be payable on demand, and may be offset by Lenders against any
amount owing by Lenders to Borrower, without prior notice to Borrower.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 Borrowing Procedure. Borrower shall give Agent written notice of each
borrowing hereunder. Not later than 1:00 p.m. (Dallas, Texas time) on the date
specified for each borrowing hereunder (which may be on the same day as Agent&#146;s
receipt of the written notice of borrowing with respect to Base Rate Loans and
which shall be at least three (3)&nbsp;Business Days after Agent&#146;s receipt of the
written notice of borrowing with respect to Eurodollar Rate Loans), each Lender
will make available the amount of the Loan to be made by it on such date to
Agent, at the Principal Office, in immediately available funds, for the account
of Borrower. The amount so received by Agent shall, subject to the terms and
conditions of this Agreement, be made available to Borrower by wire transfer of
immediately available funds to an account designated by Borrower no later than
2:00 p.m. (Dallas, Texas time) on such day.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 Purpose and Use of Funds. All amounts borrowed under the Facility
shall be used by Borrower for (i)&nbsp;working capital and other general corporate
purposes, (ii)&nbsp;the acquisition of equipment, in the ordinary course of
Borrower&#146;s business, and (iii)&nbsp;dividend of amounts to EWC GP and EWC LP, which
shall in turn dividend such amounts to Parent for the purposes provided in
paragraph 7.30.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 Borrowing Base. Any request for a Loan under the Facility which, if
funded, would result in an aggregate amount outstanding under the Facility in
excess of the Availability may be declined by Agent in its sole discretion
without prior notice to Borrower.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 Commitment Fee. Subject in all respects to the provisions of
paragraph 11.8, Borrower agrees to pay to Agent, for the account of each Lender
(based upon their respective Commitment Percentages) a commitment fee equal to
the Applicable Margin for the Commitment Fee times the Unused Portion
(calculated on a daily basis for the applicable quarterly period or portion
thereof), which shall be payable quarterly in arrears on the first day of each
April, July, October and January during the term hereof and on the date of
termination of the Facility.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 Reduction of Credit Limit. Borrower may reduce the amount of the
Aggregate Commitments by any integral multiple of $1,000,000.00, effective not
earlier than the expiration of five (5)&nbsp;Business Days prior written notice to
Agent; <I>provided</I>, that (i)&nbsp;Borrower may not execute a reduction of the Aggregate
Commitments more than one time during any Fiscal Quarter, (ii)&nbsp;Borrower shall
not reduce the Aggregate Commitments if, after giving effect thereto and to any
concurrent payments hereunder, the Total Outstandings would exceed the
Aggregate Commitments, and (iii)&nbsp;if, after giving effect to any reduction of
the Aggregate Commitments, the L/C Sublimit exceeds the amount of the Aggregate
Commitments, such L/C Sublimit shall be automatically reduced by the amount of
such excess and <I>provided further, </I>that the Aggregate Commitments may not be
increased following any such reduction.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 Letters of Credit.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(a) (i)&nbsp;Subject to the terms and conditions set forth herein, (A)
each Issuing Bank agrees, in reliance upon the agreements of the other
Lenders set forth in this paragraph 2.10: (1)&nbsp;from time to time on any
Business Day during the period from the Effective Date until the L/C
Expiration Date, to issue Letters of Credit for the account of Borrower or
its Subsidiaries, and to amend or renew Letters of Credit previously
issued by it, in accordance with subsection (b)&nbsp;below, and (2)&nbsp;to honor
drawings under the Letters of Credit; and (B)&nbsp;the Lenders severally agree
to participate in Letters of Credit issued for the account of Borrower or
its Subsidiaries and any drawings thereunder; provided that after giving
effect to any L/C Credit Extension with respect to any Letter of Credit,
(w)&nbsp;the Total Outstandings shall not exceed the Aggregate Commitments, (x)
the Total Outstandings shall not exceed the Availability, (y)&nbsp;the
aggregate Outstanding Amount of the Loans of any Lender, plus such
Lender&#146;s Commitment Percentage of the Outstanding Amount of all L/C
Obligations, shall not exceed such Lender&#146;s Commitment, and (z)&nbsp;the
Outstanding Amount of the L/C Obligations shall not exceed the L/C
Sublimit. Each request by Borrower for the issuance or amendment of a
Letter of Credit shall be deemed to be a representation by Borrower that
the L/C Credit Extension so requested complies with the conditions set
forth in the proviso to the preceding sentence. Within the foregoing
limits, and subject to the terms and conditions hereof, Borrower&#146;s ability
to obtain Letters of Credit shall be fully revolving, and accordingly
Borrower may, during the foregoing period, obtain Letters of Credit to
replace Letters of Credit that have expired or that have been drawn upon
and reimbursed.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(ii) No Issuing Bank shall issue any Letter of Credit, if:



<P align="left" style="margin-left:9%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(A) subject to paragraph 2.10(b)(iii), the expiry date
of such requested Letter of Credit would occur more than
twelve months after the date of issuance or last extension,
unless the Required Lenders have approved such expiry date;
or



<P align="left" style="margin-left:9%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(B) the expiry date of such requested Letter of Credit
would occur after the L/C Expiration Date, unless all the
Lenders have approved such expiry date.


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<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(iii) No Issuing Bank shall be under any obligation to issue
any Letter of Credit if:



<P align="left" style="margin-left:9%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(A) any order, judgment or decree of any Governmental
Authority or arbitrator shall by its terms purport to enjoin
or restrain the applicable Issuing Bank from issuing such
Letter of Credit, or any Law applicable to such Issuing Bank
or any request or directive (whether or not having the force
of law) from any Governmental Authority with jurisdiction
over such Issuing Bank shall prohibit, or request that such
Issuing Bank refrain from, the issuance of letters of credit
generally or such Letter of Credit in particular or shall
impose upon such Issuing Bank with respect to such Letter of
Credit any restriction, reserve or capital requirement (for
which such Issuing Bank is not otherwise compensated
hereunder) not in effect on the Effective Date, or shall
impose upon such Issuing Bank any unreimbursed loss, cost or
expense which was not applicable on the Effective Date and
which such Issuing Bank in good faith deems material to it;



<P align="left" style="margin-left:9%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(B) the issuance of such Letter of Credit would violate
any Laws or one or more policies of the applicable Issuing
Bank;



<P align="left" style="margin-left:9%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(C) except as otherwise agreed by Agent and the
applicable Issuing Bank, such Letter of Credit is in an
initial face amount less than $100,000;



<P align="left" style="margin-left:9%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(D) such Letter of Credit is to be denominated in a
currency other than Dollars;



<P align="left" style="margin-left:9%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(E) a default of any Lender&#146;s obligations to fund under
paragraph 2.10(c) exists or any Lender is at such time a
Defaulting Lender hereunder, unless the applicable Issuing
Bank has entered into satisfactory arrangements with Borrower
or such Lender to eliminate such Issuing Bank&#146;s risk with
respect to such Lender; or



<P align="left" style="margin-left:9%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(F) such Letter of Credit contains any provisions for
automatic reinstatement of the stated amount after drawing
thereunder.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(iv) No Issuing Bank shall amend any Letter of Credit if the
Issuing Bank would not be permitted at such time to issue such
Letter of Credit in its amended form under the terms hereof.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(v) No Issuing Bank shall be under any obligation to amend any
Letter of Credit if (A)&nbsp;such Issuing Bank would have no obligation
at such time to issue such Letter of Credit in its amended form
under the terms hereof, or (B)&nbsp;the beneficiary of such Letter of
Credit does not accept the proposed amendment to such Letter of
Credit.


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<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(b) Procedures for Issuance and Amendment of Letters of Credit;
Auto-Extension Letter of Credit.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(i) Each Letter of Credit shall be issued or amended, as the
case may be, upon the request of Borrower delivered to an Issuing
Bank (with a copy to Agent) in the form of a L/C Application,
appropriately completed and signed by a Responsible Officer of
Borrower. Such L/C Application must be received by the applicable
Issuing Bank and Agent not later than 11:00&nbsp;a.m. at least two
Business Days (or such later date and time as such Issuing Bank may
agree in a particular instance in its sole discretion) prior to the
proposed issuance date or date of amendment, as the case may be.
In the case of a request for an initial issuance of a Letter of
Credit, such L/C Application shall specify in form and detail
satisfactory to such Issuing Bank: (A)&nbsp;the proposed issuance date
of the requested Letter of Credit (which shall be a Business Day);
(B)&nbsp;the amount thereof; (C)&nbsp;the expiry date thereof; (D)&nbsp;the name
and address of the beneficiary thereof; (E)&nbsp;the documents to be
presented by such beneficiary in case of any drawing thereunder;
(F)&nbsp;the full text of any certificate to be presented by such
beneficiary in case of any drawing thereunder; and (G)&nbsp;such other
matters as such Issuing Bank may require. In the case of a request
for an amendment of any outstanding Letter of Credit, such L/C
Application shall specify in form and detail satisfactory to such
Issuing Bank (A)&nbsp;the Letter of Credit to be amended; (B)&nbsp;the
proposed date of amendment thereof (which shall be a Business Day);
(C)&nbsp;the nature of the proposed amendment; and (D)&nbsp;such other
matters as such Issuing Bank may require. Additionally, Borrower
shall furnish to the applicable Issuing Bank and Agent such other
documents and information pertaining to such requested Letter of
Credit issuance or amendment, including any Issuer Documents, as
the Issuing Bank or Agent may require.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(ii) Promptly after receipt of any L/C Application at the
address set forth in paragraph 11.2 for receiving L/C Applications
and related correspondence, the applicable Issuing Bank will
confirm with Agent (by telephone or in writing) that Agent has
received a copy of such L/C Application from Borrower and, if not,
such Issuing Bank will provide Agent with a copy thereof. Unless
such Issuing Bank has received written notice from any Lender,
Agent or any Loan Party, at least one Business Day prior to the
requested date of issuance or amendment of the applicable Letter of
Credit, that one or more applicable conditions in Article&nbsp;V shall
not then be satisfied, then, subject to the terms and conditions
hereof, such Issuing Bank shall, on the requested date, issue a
Letter of Credit for the account of Borrower (or the applicable
Subsidiary) or enter into the applicable amendment, as the case may
be, in each case in accordance with such Issuing Bank&#146;s usual and
customary business practices. Immediately upon the issuance of
each Letter of Credit, each Lender shall be deemed to, and hereby
irrevocably and unconditionally agrees to, purchase from the
applicable Issuing Bank a risk participation in such Letter of
Credit in an amount equal to the product of such Lender&#146;s
Commitment Percentage times the amount of such Letter of Credit.


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<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(iii) If Borrower so requests in any applicable L/C
Application, the applicable Issuing Bank may, in its sole and
absolute discretion, agree to issue a Letter of Credit that has
automatic extension provisions (each, an &#147;Auto-Extension Letter of
Credit&#148;); provided that any such Auto-Extension Letter of Credit
must permit such Issuing Bank to prevent any such extension at
least once in each twelve-month period (commencing with the date of
issuance of such Letter of Credit) by giving prior notice to the
beneficiary thereof not later than a day (the &#147;Non-Extension Notice
Date&#148;) in each such twelve-month period to be agreed upon at the
time such Letter of Credit is issued. Unless otherwise directed by
the applicable Issuing Bank, the Borrower shall not be required to
make a specific request to such Issuing Bank for any such
extension. Once an Auto-Extension Letter of Credit has been
issued, the Lenders shall be deemed to have authorized (but may not
require) such Issuing Bank to permit the extension of such Letter
of Credit at any time to an expiry date not later than the Letter
of Credit Expiration Date; provided, however, that the Issuing Bank
shall not permit any such extension if (A)&nbsp;such Issuing Bank has
determined that it would not be permitted, or would have no
obligation, at such time to issue such Letter of Credit in its
revised form (as extended) under the terms hereof (by reason of the
provisions of clause (ii)&nbsp;or (iii)&nbsp;of paragraph 2.03(a) or
otherwise), or (B)&nbsp;it has received notice (which may be by
telephone or in writing) on or before the day that is five Business
Days before the Non-Extension Notice Date (1)&nbsp;from the
Administrative Agent that the Required Lenders have elected not to
permit such extension or (2)&nbsp;from the Administrative Agent, any
Lender or Borrower that one or more of the applicable conditions
specified in paragraph 5.2 is not then satisfied, and in each such
case directing the applicable Issuing Bank not to permit such
extension.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(iv) Promptly after its delivery of any Letter of Credit or
any amendment to a Letter of Credit to an advising bank with
respect thereto or to the beneficiary thereof, the applicable
Issuing Bank will also deliver to Borrower and Agent a true and
complete copy of such Letter of Credit or amendment.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(c) Drawings and Reimbursements; Funding of Participations.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(i) Upon receipt from the beneficiary of any Letter of Credit
of any notice of a drawing under such Letter of Credit, the Issuing
Bank who receives such notice shall notify Borrower and Agent
thereof. Not later than 11:00&nbsp;a.m. on the date of any payment by
any Issuing Bank under a Letter of Credit (each such date, an
&#147;Honor Date&#148;), Borrower shall reimburse such Issuing Bank through
Agent in an amount equal to the amount of such drawing. If
Borrower fails to so reimburse such Issuing Bank by such time,
Agent shall promptly notify each Lender of the Honor Date, the
amount of the unreimbursed drawing (the &#147;Unreimbursed Amount&#148;), and
the amount of such Lender&#146;s Commitment Percentage thereof. In such
event, Borrower shall be deemed to have requested a borrowing of
Base Rate Loans to be disbursed on the Honor Date in an amount
equal to the Unreimbursed Amount, subject to the amount of the
unutilized portion of the Aggregate Commitments and the conditions
set forth in


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<P align="left" style="margin-left:6%; font-size: 10pt">paragraph 5.2. Any notice given by an Issuing Bank or Agent pursuant to
this paragraph 2.10(c)(i) may be given by telephone if immediately
confirmed in writing; provided that the lack of such an immediate
confirmation shall not affect the conclusiveness or binding effect
of such notice.




<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(ii) Each Lender (including Lender acting as an Issuing Bank)
shall upon any notice pursuant to paragraph 2.10(c)(i) make funds
available to Agent for the account of the applicable Issuing Bank
at the Principal Office in an amount equal to its Commitment
Percentage of the Unreimbursed Amount not later than 1:00 p.m. on
the Business Day specified in such notice by Agent, whereupon,
subject to the provisions of paragraph 2.10(c)(iii), each Lender
that so makes funds available shall be deemed to have made a Base
Rate Loan to Borrower in such amount. Agent shall remit the funds
so received to such Issuing Bank.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(iii) With respect to any Unreimbursed Amount that is not
fully refinanced by a borrowing of Base Rate Loans because the
conditions set forth in paragraph 5.2 cannot be satisfied or for
any other reason, Borrower shall be deemed to have incurred from
the applicable Issuing Bank an L/C Borrowing in the amount of the
Unreimbursed Amount that is not so refinanced, which L/C Borrowing
shall be due and payable on demand (together with interest) and
shall bear interest at the Default Rate. In such event, each
Lender&#146;s payment to Agent for the account of such Issuing Bank
pursuant to paragraph 2.10(c)(ii) shall be deemed payment in
respect of its participation in such L/C Borrowing and shall
constitute an L/C Advance from such Lender in satisfaction of its
participation obligation under this paragraph 2.10.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(iv) Until each Lender funds its Loan or L/C Advance pursuant
to this paragraph 2.10(c) to reimburse the applicable Issuing Bank
for any amount drawn under any Letter of Credit, interest in
respect of such Lender&#146;s Commitment Percentage of such amount shall
be solely for the account of such Issuing Bank.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(v) Each Lender&#146;s obligation to make Loans or L/C Advances to
reimburse each Issuing Bank for amounts drawn under Letters of
Credit, as contemplated by this paragraph 2.10(c), shall be
absolute and unconditional and shall not be affected by any
circumstance, including (A)&nbsp;any set-off, counterclaim, recoupment,
defense or other right which such Lender may have against an
Issuing Bank, Borrower or any other Person for any reason
whatsoever; (B)&nbsp;the occurrence or continuance of a Default, or (C)
any other occurrence, event or condition, whether or not similar to
any of the foregoing; provided, however, that each Lender&#146;s
obligation to make Loans pursuant to this paragraph 2.10(c) is
subject to the conditions set forth in paragraph 5.2. No such
making of an L/C Advance shall relieve or otherwise impair the
obligation of Borrower to reimburse an Issuing Bank for the amount
of any payment made by such Issuing Bank under any Letter of
Credit, together with interest as provided herein.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(vi) If any Lender fails to make available to Agent for the
account of an Issuing Bank any amount required to be paid by such
Lender pursuant to the


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<P align="left" style="margin-left:6%; font-size: 10pt">foregoing provisions of this paragraph 2.10(c) by the time
specified in paragraph 2.10(c)(ii), such Issuing Bank shall be
entitled to recover from such Lender (acting through Agent), on
demand, such amount with interest thereon for the period from the
date such payment is required to the date on which such payment is
immediately available to such Issuing Bank at a rate per annum
equal to the Federal Funds Rate from time to time in effect. A
certificate of such Issuing Bank submitted to any Lender (through
Agent) with respect to any amounts owing under this clause (vi)
shall be conclusive absent manifest error.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(d) Repayment of Participations.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(i) At any time after an Issuing Bank has made a payment under
any Letter of Credit and has received from any Lender such Lender&#146;s
L/C Advance in respect of such payment in accordance with paragraph
2.10(c), if Agent receives for the account of such Issuing Bank any
payment in respect of the related Unreimbursed Amount or interest
thereon (whether directly from Borrower or otherwise, including
proceeds of Cash Collateral applied thereto by Agent), Agent will
distribute to such Lender its Commitment Percentage thereof
(appropriately adjusted, in the case of interest payments, to
reflect the period of time during which such Lender&#146;s L/C Advance
was outstanding) in the same funds as those received by Agent.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(ii) If any payment received by Agent for the account of an
Issuing Bank pursuant to paragraph 2.10(c)(i) is required to be
returned under any of the circumstances described in paragraph
11.27 (including pursuant to any settlement entered into by an
Issuing Bank in its discretion), each Lender shall pay to Agent for
the account of such Issuing Bank its Commitment Percentage thereof
on demand of Agent, plus interest thereon from the date of such
demand to the date such amount is returned by such Lender, at a
rate per annum equal to the Federal Funds Rate from time to time in
effect.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(e) Obligations Absolute. The obligation of Borrower to reimburse
an Issuing Bank for each drawing under each Letter of Credit and to repay
each L/C Borrowing shall be absolute, unconditional and irrevocable, and
shall be paid strictly in accordance with the terms of this Agreement
under all circumstances, including the following:



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(i) any lack of validity or enforceability of such Letter of
Credit, this Agreement, or any other Loan Document;



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(ii) the existence of any claim, counterclaim, set-off,
defense or other right that Borrower or any Subsidiary may have at
any time against any beneficiary or any transferee of such Letter
of Credit (or any Person for whom any such beneficiary or any such
transferee may be acting), any Issuing Bank or any other Person,
whether in connection with this Agreement, the transactions
contemplated hereby or by such Letter of Credit or any agreement or
instrument relating thereto, or any unrelated transaction;


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<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(iii) any draft, demand, certificate or other document
presented under such Letter of Credit proving to be forged,
fraudulent, invalid or insufficient in any respect or any statement
therein being untrue or inaccurate in any respect; or any loss or
delay in the transmission or otherwise of any document required in
order to make a drawing under such Letter of Credit;



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(iv) any payment by any Issuing Bank under such Letter of
Credit against presentation of a draft or certificate that does not
strictly comply with the terms of such Letter of Credit; or any
payment made by any Issuing Bank under such Letter of Credit to any
Person purporting to be a trustee in bankruptcy,
debtor-in-possession, assignee for the benefit of creditors,
liquidator, receiver or other representative of or successor to any
beneficiary or any transferee of such Letter of Credit, including
any arising in connection with any proceeding under any Debtor
Relief Law; or



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(v) any other circumstance or happening whatsoever, whether or
not similar to any of the foregoing, including any other
circumstance that might otherwise constitute a defense available
to, or a discharge of, Borrower or any Subsidiary of Borrower.



<P align="left" style="font-size: 10pt">Borrower shall promptly examine a copy of each Letter of Credit and each
amendment thereto that is delivered to it and, in the event of any claim
of noncompliance with Borrower&#146;s instructions or other irregularity,
Borrower will immediately notify the applicable Issuing Bank. Borrower
shall be conclusively deemed to have waived any such claim against each
Issuing Bank and its correspondents unless such notice is given as
aforesaid.




<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(f) Role of Issuing Bank. Each Lender and Borrower agree that, in
paying any drawing under a Letter of Credit, no Issuing Bank shall have
any responsibility to obtain any document (other than any sight draft,
certificates and documents expressly required by the Letter of Credit) or
to ascertain or inquire as to the validity or accuracy of any such
document or the authority of the Person executing or delivering any such
document. No Issuing Bank, any Agent-Related Person nor any of the
respective correspondents, participants or assignees of any Issuing Bank
shall be liable to any Lender for (i)&nbsp;any action taken or omitted in
connection herewith at the request or with the approval of Lenders or the
Required Lenders, as applicable; (ii)&nbsp;any action taken or omitted in the
absence of gross negligence or willful misconduct; or (iii)&nbsp;the due
execution, effectiveness, validity or enforceability of any document or
instrument related to any Letter of Credit or L/C Application. Borrower
hereby assumes all risks of the acts or omissions of any beneficiary or
transferee with respect to its use of any Letter of Credit; provided,
however, that this assumption is not intended to, and shall not, preclude
Borrower&#146;s pursuing such rights and remedies as it may have against the
beneficiary or transferee at law or under any other agreement. No Issuing
Bank, any Agent-Related Person, nor any of the respective correspondents,
participants or assignees of any Issuing Bank, shall be liable or
responsible for any of the matters described in clauses (i)&nbsp;through (v)&nbsp;of
paragraph 2.10(e); provided, however, that anything in such clauses to the
contrary notwithstanding, Borrower may have a claim against an Issuing
Bank, and an Issuing


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<P align="left" style="margin-left:3%; font-size: 10pt">Bank may be liable to Borrower, to the extent, but only to the
extent, of any direct, as opposed to consequential or exemplary, damages
suffered by Borrower which Borrower proves were caused by such Issuing
Bank&#146;s willful misconduct or gross negligence or such Issuing Bank&#146;s
willful failure to pay under any Letter of Credit after the presentation
to it by the beneficiary of a sight draft and certificate(s) strictly
complying with the terms and conditions of a Letter of Credit. In
furtherance and not in limitation of the foregoing, each Issuing Bank may
accept documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or
information to the contrary, and no Issuing Bank shall be responsible for
the validity or sufficiency of any instrument transferring or assigning or
purporting to transfer or assign a Letter of Credit or the rights or
benefits thereunder or proceeds thereof, in whole or in part, which may
prove to be invalid or ineffective for any reason.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(g) Cash Collateral. Upon the request of Agent, (i)&nbsp;if any Issuing
Bank has honored any full or partial drawing request under any Letter of
Credit and such drawing has resulted in an L/C Borrowing, or (ii)&nbsp;if, as
of the L/C Expiration Date, any Letter of Credit for any reason remains
outstanding and partially or wholly undrawn, Borrower shall immediately
Cash Collateralize the then Outstanding Amount of all L/C Obligations (in
an amount equal to such Outstanding Amount determined as of the date of
such L/C Borrowing or the L/C Expiration Date, as the case may be).
Paragraph&nbsp;9.2(c) sets forth certain additional requirements to deliver
Cash Collateral hereunder. For purposes hereof, &#147;Cash Collateralize&#148;
means to pledge and deposit with or deliver to Agent, for the benefit of
each Issuing Bank and the Lenders, as collateral for the L/C Obligations,
cash or deposit account balances pursuant to documentation in form and
substance satisfactory to Agent and each Issuing Bank (which documents
are hereby consented to by Lenders). Derivatives of such term have
corresponding meanings. Borrower hereby grants to Agent, for the benefit
of each Issuing Bank and Lenders, a security interest in all such cash,
deposit accounts and all balances therein and all proceeds of the
foregoing. Cash collateral shall be maintained in blocked, non-interest
bearing deposit accounts at Bank of America.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(h) Applicability of ISP98. Unless otherwise expressly agreed by
any Issuing Bank and Borrower when a Letter of Credit is issued the rules
of the ISP shall apply to each Letter of Credit.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(i) L/C Fees. Borrower shall pay to Agent for the account of each
Lender in accordance with its Commitment Percentage a Letter of Credit
fee (the &#147;L/C Fee&#148;) for each Letter of Credit equal to 1% per annum times
the daily maximum amount available to be drawn under such Letter of
Credit (whether or not such maximum amount is then in effect under such
Letter of Credit). L/C Fees shall be (i)&nbsp;computed on a quarterly basis
in arrears and (ii)&nbsp;due and payable on the first Business Day after the
end of each March, June, September and December, commencing with the
first such date to occur after the issuance of such Letter of Credit, on
the L/C Expiration Date and thereafter on demand. Notwithstanding
anything to the contrary contained herein, upon the request of the
Required Lenders, while any Event of Default exists, all L/C Fees shall
accrue at the Default Rate.


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<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(j) Fronting Fee and Documentary and Processing Charges Payable to
Issuing Bank. Borrower shall pay directly to the applicable Issuing Bank
for its own account a fronting fee with respect to each Letter of Credit
in an amount equal to 0.125% per annum, payable on the actual daily
maximum amount available to be drawn under such Letter of Credit (whether
or not such maximum amount is then in effect under such Letter of Credit).
Such fronting fee shall be due and payable on the first Business Day
after the end of each March, June, September and December, commencing with
the first such date to occur after the issuance of such Letter of Credit,
on the L/C Expiration Date and thereafter on demand. In addition,
Borrower shall pay directly to the applicable Issuing Bank for its own
account the reasonable and customary issuance, presentation, amendment and
other processing fees, and other standard costs and charges, of such
Issuing Bank relating to letters of credit as from time to time in effect.
Such individual customary fees and standard costs and charges are due and
payable on demand and are nonrefundable.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(k) Conflict with Issuer Documents. In the event of any conflict
between the terms hereof and the terms of any Issuer Documents, the terms
hereof shall control.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(l) Letters of Credit Issued for Subsidiaries. Notwithstanding that
a Letter of Credit issued or outstanding hereunder is in support of any
obligations of, or is for the account of, a Subsidiary, Borrower shall be
obligated to reimburse the applicable Issuing Bank hereunder for any and
all drawings under such Letter of Credit. Borrower hereby acknowledges
that the issuance of Letters of Credit for the account of Subsidiaries
inures to the benefit of Borrower, and that Borrower&#146;s business derives
substantial benefits from the businesses of such Subsidiaries.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 Continuing Representations. Except as may have been otherwise
disclosed to Agent in writing, each request for a Loan under the Facility shall
constitute a continuing representation that no event or condition that would be
the subject of a required notice under paragraph 7.11 or paragraph 7.12 is in
existence as of such time.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12 Increase in Commitments.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Provided there exists no Default, upon notice to Agent (which shall
promptly notify Lenders), Borrower may from time to time, request an increase
in the Commitments by an amount (for all such requests) not exceeding
$40,000,000. At the time of sending such notice, Borrower (in consultation
with Agent) shall specify the time period within which each Lender is requested
to respond (which shall in no event be less than ten Business Days from the
date of delivery of such notice to Lender). Each Lender shall notify Agent
within such time period whether or not it agrees to increase its Commitment
and, if so, whether by an amount equal to, greater than, or less than its pro
rata share of such requested increase. Any Lender not responding within such
time period shall be deemed to have declined to increase its Commitment. Agent
shall notify Borrower and each Lender of Lenders&#146; responses to each request
made hereunder. To achieve the full amount of a requested increase as a result
of all or a portion of Lenders at such time not increasing their respective
Commitments in an aggregate amount to the increased amount of Commitments
requested by Borrower, Borrower may also


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<P align="left" style="font-size: 10pt">invite additional Eligible Assignees to become Lenders pursuant to a
joinder agreement in form and substance satisfactory to Agent and its counsel.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If the Aggregate Commitments are increased in accordance with this
paragraph 2.12, Agent and Borrower shall determine the closing date (the
&#147;Increase Closing Date&#148;) and the final allocation of such increase. Agent
shall promptly notify Borrower and Lenders of the final allocation of such
increase and the Increase Closing Date. As a condition precedent to such
increase, Borrower shall deliver to Agent a certificate of Borrower and each
Guarantor dated as of the Increase Closing Date (in sufficient copies for each
Lender) signed by an officer of Borrower and each Guarantor (i)&nbsp;certifying and
attaching the resolutions adopted by Borrower and each Guarantor approving or
consenting to such increase, and (ii)&nbsp;in the case of Borrower, certifying that,
before and after giving effect to such increase, (A)&nbsp;the representations and
warranties contained in ARTICLE VI and the other Loan Documents are true and
correct on and as of such Increase Closing Date, except to the extent that such
representations and warranties specifically refer to an earlier date, in which
case they are true and correct as of such earlier date, and (B)&nbsp;no Default or
Event of Default exists or would result therefrom. On the Increase Closing
Date, each Lender shall, to the extent necessary, make a payment to Agent in an
amount sufficient, upon the application of such payments by all Lenders to the
reduction of outstanding Loans held by Lenders, to cause the principal amount
of Loans outstanding made by each Lender to be in the amount of its pro rata
share (after giving effect to the increase in the Commitments in accordance
with this paragraph 2.12) of all outstanding Loans. Borrower hereby
irrevocably authorizes each Lender to fund to Agent the payment required to be
made pursuant to the immediately preceding sentence for application to the
reduction of the outstanding Loans held by the other Lenders. If, as a result
of the repayment of Loans provided for in this paragraph 2.12, any payment of
Eurodollar Rate Loans occurs on a day which is not the last day of the
applicable Interest Period, Borrower will pay to Agent for the benefit of any
Lender holding a Eurodollar Rate Loan any loss or cost incurred by such Lender
resulting therefrom in accordance with paragraph 3.2 to the extent a Eurodollar
Rate Loan is paid on other than the last day of an Interest Period as a result
thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Upon the Increase Closing Date and the making of the payments
described in paragraph 2.12(b), each new Lender and/or increasing Lender shall
be deemed to have irrevocably and unconditionally purchased and received,
without recourse or warranty, an undivided participation in all outstanding L/C
Obligations in accordance with its Commitment Percentage.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;This paragraph shall supersede any provisions in paragraph 4.2 or
paragraph 11.18 to the contrary; provided that no Lender shall be obligated to
increase its Commitment.


<P align="center" style="font-size: 10pt">ARTICLE III. INTEREST



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 Interest. The unpaid principal from day to day outstanding under the
Facility shall bear interest as follows:


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<P align="left" style="margin-left:3%; font-size: 10pt">3.1.1 Applicable Rate.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(a) Subject to any election by Borrower in respect of the
Eurodollar Rate under paragraph 3.1.1(b), the unpaid principal from
day to day outstanding under the Facility shall bear interest at
the lesser of (i)&nbsp;the Base Rate plus the Applicable Margin or (ii)
the Maximum Rate, <I>provided, </I>however that, subject to the provisions
of paragraph 11.8, in the event that the Base Rate plus the
Applicable Margin shall exceed the Maximum Rate at any time and
thereafter the Base Rate plus the Applicable Margin shall be less
than the Maximum Rate, the rate of interest applicable hereunder
shall remain at the Maximum Rate until the aggregate accrued
interest to date under the Facility equals the amount that would
have accrued had the Base Rate plus the Applicable Margin at all
times remained in effect.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(b) Subject to limitation by the Maximum Rate and the terms
and provisions of this Agreement, and in lieu of the rate otherwise
applicable under paragraph 3.1.1(a), Borrower shall have the option
to elect the Eurodollar Rate as being applicable during any
Interest Period to any Tranche of the Facility, <I>provided, </I>that any
such Tranche shall be in the minimum amount of $500,000.00, and no
more than six (6)&nbsp;separate Tranches may exist in the aggregate at
any one time.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(c) Upon written notification to Borrower at any time when any
Event of Default exists, the unpaid principal outstanding under the
Facility shall bear interest at the Default Rate, beginning on the
effective date specified in such written notice (which shall be on
or after the date on which any such Event of Default shall have
first occurred) and continuing thereafter for so long as any such
Event of Default remains uncured or until Lender may agree
otherwise, <I>provided, </I>that all past due principal and all past due
accrued interest under the Facility shall automatically accrue
interest at the Default Rate.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.2 Election of Eurodollar Rate Loan. Borrower may elect a
Eurodollar Rate Loan at any time by written notice of election, in form
satisfactory to Agent, delivered to Agent no later than 1:00 p.m. Dallas,
Texas time on the second Eurodollar Business Day prior to the beginning
of the Interest Period to which such Eurodollar Rate Loan shall be
applicable, therein stating (i)&nbsp;the Eurodollar Rate Loan elected, (ii)
the Interest Period selected, and the date such Interest Period is to
begin, and (iii)&nbsp;the principal amount of the Tranche to be subject to
such Eurodollar Rate Loan (which shall beat least $500,000.00). Any such
written notice of election shall be irrevocable by Borrower. Any unpaid
principal under the Facility with respect to which no timely election of
an Eurodollar Rate Loan is made shall automatically be deemed to be
subject to, and shall accrue interest at, the Base Rate as provided by
paragraph 3.1.1(a).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.3 Interest Payment Dates. Accrued interest under the Facility
shall be payable on each Interest Payment Date applicable thereto and at
such other times as specified herein. Interest hereunder shall be due
and payable in accordance with the


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<P align="left" style="font-size: 10pt">terms hereof before and after judgment, and before and after the
commencement under any Debtor Relief Law.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 Compensation for Losses. Prepayments of principal under the Facility
shall be applied first in reduction of unpaid principal under the Base Rate
Loan, and thereafter to any Eurodollar Rate Loan, as designated by Borrower
(subject, however to paragraph 9.9). Upon demand of any Lender (with a copy to
Agent) from time to time, Borrower shall promptly compensate such Lender for
and hold such Lender harmless from any loss, cost or expense incurred by it as
a result of:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(a) any continuation, conversion, payment or prepayment of any Loan
other than a Base Rate Loan on a day other than the last day of the
Interest Period for such Loan (whether voluntary, mandatory, automatic,
by reason of acceleration, or otherwise); or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(b) any failure by Borrower (for a reason other than the failure of
such Lender to make a Loan) to prepay, borrow, continue or convert any
Loan other than a Base Rate Loan on the date or in the amount notified by
Borrower;



<P align="left" style="margin-left:3%; font-size: 10pt">including any loss of anticipated profits and any loss or expense arising
from the liquidation or reemployment of funds obtained by it to maintain
such Loan or from fees payable to terminate the deposits from which such
funds were obtained. Borrower shall also pay any customary
administrative fees charged by such Lender in connection with the
foregoing. For purposes of calculating amounts payable by Borrower to
Lenders under this paragraph 3.2, each Lender shall be deemed to have
funded each Eurodollar Rate Loan made by it at the Eurodollar Base Rate
used in determining the Eurodollar Rate for such Loan by a matching
deposit or other borrowing in the London interbank eurodollar market for
a comparable amount and for a comparable period, whether or not such
Eurodollar Rate Loan was in fact so funded.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 Inability to Determine Rates. If Agent determines in connection with
any request for a Eurodollar Rate Loan or a conversion to or continuation
thereof for any reason that (a)&nbsp;Dollar deposits are not being offered to banks
in the London interbank eurodollar market for the applicable amount and
Interest Period of such Eurodollar Rate Loan, (b)&nbsp;adequate and reasonable means
do not exist for determining the Eurodollar Base Rate for any requested
Interest Period with respect to a proposed Eurodollar Rate Loan, or (c)&nbsp;that
the Eurodollar Base Rate for any requested Interest Period with respect to a
proposed Eurodollar Rate Loan does not adequately and fairly reflect the cost
to such Lenders of funding such Loan, Agent will promptly so notify Borrower
and each Lender. Thereafter, the obligation of Lenders to make or maintain
Eurodollar Rate Loans shall be suspended until Agent (upon the instruction of
the Required Lenders) revokes such notice. Upon receipt of such notice,
Borrower may revoke any pending request for a borrowing of, conversion to or
continuation of Eurodollar Rate Loans or, failing that, will be deemed to have
converted such request into a request for a borrowing of Base Rate Loans in the
amount specified therein.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 Increased Cost and Reduced Return; Capital Adequacy; Reserves on
Eurodollar Rate Loans. (a)&nbsp;If any Lender determines that as a result of the
introduction or phase-in of or any


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<P align="left" style="font-size: 10pt">change in or in the interpretation of any Law after the date hereof, or
such Lender&#146;s compliance therewith, there shall be any increase in the cost to
such Lender of agreeing to make or making, funding or maintaining Eurodollar
Rate Loans or (as the case may be) issuing or participating in Letters of
Credit, or a reduction in the amount received or receivable by such Lender in
connection with any of the foregoing (excluding for purposes of this subsection
(a)&nbsp;any such increased costs or reduction in amount resulting from (i)&nbsp;taxes,
levies, duties, imposts, assessments or other charges (as to which paragraph
4.6 shall govern), (ii)&nbsp;changes in the basis of taxation of overall net income
or overall gross income by the United States or any foreign jurisdiction or any
political subdivision of either thereof under the Laws of which such Lender is
organized or has its Lending Office, and (iii)&nbsp;reserve requirements utilized in
the determination of the Eurodollar Rate), then from time to time upon demand
of such Lender (with a copy of such demand to Agent), Borrower shall pay to
such Lender such additional amounts as will compensate such Lender for such
increased cost or reduction.




<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(b) If any Lender determines that the introduction or phase-in of any
Law regarding capital adequacy or any change therein or in the
interpretation thereof after the date hereof, or compliance by such Lender
(or its Lending Office) therewith, has the effect of reducing the rate of
return on the capital of such Lender or any corporation controlling such
Lender as a consequence of such Lender&#146;s obligations hereunder (taking
into consideration its policies with respect to capital adequacy and such
Lender&#146;s desired return on capital), then from time to time upon demand of
such Lender (with a copy of such demand to Agent), Borrower shall pay to
such Lender such additional amounts as will compensate such Lender for
such reduction.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 Matters Applicable to all Requests for Compensation. A certificate of
Agent or any Lender claiming compensation under this Article&nbsp;III and setting
forth the additional amount or amounts to be paid to it hereunder shall be
conclusive in the absence of manifest error. In determining such amount, Agent
or such Lender may use any reasonable averaging and attribution methods.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 Illegality. If any Lender determines that any Law has made it
unlawful, or that any Governmental Authority has asserted that it is unlawful,
for any Lender or its applicable Lending Office to make, maintain or fund
Eurodollar Rate Loans, or to determine or charge interest rates based upon the
Eurodollar Rate, then, on notice thereof by such Lender to Borrower through
Agent, any obligation of such Lender to make or continue Eurodollar Rate Loans
or to convert Base Rate Loans to Eurodollar Rate Loans shall be suspended until
such Lender notifies Agent and Borrower that the circumstances giving rise to
such determination no longer exist. Upon receipt of such notice, Borrower
shall, upon demand from such Lender (with a copy to Agent), prepay or, if
applicable, convert all Eurodollar Rate Loans of such Lender to Base Rate
Loans, either on the last day of the Interest Period therefor, if such Lender
may lawfully continue to maintain such Eurodollar Rate Loans to such day, or
immediately, if such Lender may not lawfully continue to maintain such
Eurodollar Rate Loans. Upon any such prepayment or conversion, Borrower shall
also pay accrued interest on the amount so prepaid or converted and all amounts
due under paragraph 3.2 in accordance with the terms thereof due to such
prepayment or conversion. Each Lender agrees to designate a different Lending
Office if such designation will avoid the need for such notice and will not, in
the good faith judgment of such Lender, otherwise be materially disadvantageous
to such Lender.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 Definitions. The following terms shall be defined as herein provided:



<P align="left" style="margin-left:6%; font-size: 10pt">&#147;Base Rate&#148; means for any day a fluctuating rate per annum
equal to the higher of (a)&nbsp;the Federal Funds Rate plus 1/2 of
1% and (b)&nbsp;the rate of interest in effect for such day as
publicly announced from time to time by Bank of America as
its &#147;prime rate.&#148; The &#147;prime rate&#148; is a rate set by Bank of
America based upon various factors including Bank of
America&#146;s costs and desired return, general economic
conditions and other factors, and is used as a reference
point for pricing some loans, which may be priced at, above,
or below such announced rate. Any change in such rate
announced by Bank of America shall take effect at the opening
of business on the day specified in the public announcement
of such change.



<P align="left" style="margin-left:6%; font-size: 10pt">&#147;Base Rate Loan&#148; means a Loan that bears interest based on
the Base Rate.



<P align="left" style="margin-left:6%; font-size: 10pt">&#147;Eurodollar Base Rate&#148; has the meaning specified in the
definition of Eurodollar Rate.



<P align="left" style="margin-left:6%; font-size: 10pt">&#147;Eurodollar Business Day&#148; means any Business Day on which
dealings in the United States Dollars are conducted in the
London interbank market.



<P align="left" style="margin-left:6%; font-size: 10pt">&#147;Eurodollar Rate&#148; means for any Interest Period with respect
to a Eurodollar Rate Loan, a rate per annum determined by
Agent pursuant to the following formula:

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="55%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="57%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Eurodollar Rate
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">=
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Eurodollar Base Rate<BR>
<BR>
</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1.00 &#150; Eurodollar Reserve Percentage</TD>
</TR>

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</DIV>




<P align="left" style="margin-left:6%; font-size: 10pt">Where,



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&#147;Eurodollar Base Rate&#148; means, for such Interest Period
(rounded upwards, as necessary, to the nearest 1/100 of 1%)
the rate per annum equal to the British Bankers Association
LIBOR Rate (&#147;BBA LIBOR&#148;), as published by Reuters (or other
commercially available source providing quotations of BBA
LIBOR as designated by Agent from time to time) at
approximately 11:00&nbsp;a.m., London time, two Business Days
prior to the commencement of such Interest Period, for Dollar
deposits (for delivery on the first day of such Interest
Period) with a term equivalent to such Interest Period. If
such rate is not available at such time for any reason, then
the &#147;Eurodollar Rate&#148; for such Interest Period shall be the
rate per annum determined by Agent to be the rate at which
deposits in Dollars for delivery on the first day of such
Interest Period in same day funds in the approximate amount
of Eurodollar Rate Loan being made, continued or converted by
Bank of America and with a term equivalent to such Interest
Period would be offered by Bank of America&#146;s London Branch to
major banks in the London interbank eurodollar market at
their request at


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<P align="left" style="margin-left:6%; font-size: 10pt">approximately 11:00&nbsp;a.m. (London time) two Business Days
prior to the commencement of such Interest Period.



<P align="left" style="margin-left:6%; font-size: 10pt">&#147;Eurodollar Reserve Percentage&#148; means, for any day during any
Interest Period, the reserve percentage (expressed as a
decimal, carried out to five decimal places) in effect on
such day, whether or not applicable to any Lender, under
regulations issued from time to time by the Board of
Governors of the Federal Reserve System of the United States
for determining the maximum reserve requirement (including
any emergency, supplemental or other marginal reserve
requirement) with respect to Eurocurrency funding (currently

referred to as &#147;Eurocurrency liabilities&#148;). The Eurodollar
Rate for each outstanding Eurodollar Rate Loan shall be
adjusted automatically as of the effective date of any change
in the Eurodollar Reserve Percentage.



<P align="left" style="margin-left:6%; font-size: 10pt">&#147;Eurodollar Rate Loan&#148; means a Loan that bears interest at a
rate based on the Eurodollar Rate.



<P align="left" style="margin-left:6%; font-size: 10pt">&#147;Interest Payment Date&#148; means, (a)&nbsp;as to any Loan other than
a Base Rate Loan, the last day of each Interest Period
applicable to such Loan and the last day of the Contract Term
and, if applicable, on the day the outstanding Obligations
are due and payable pursuant to paragraph 9.3; provided,
however, that if any Interest Period for a Eurodollar Rate
Loan exceeds three months, the respective dates that fall
every three months after the beginning of such Interest
Period shall also be Interest Payment Dates; and (b)&nbsp;as to
any Base Rate Loan, the last Business Day of each March,
June, September and December and the last day of the Contract
Term and, if applicable, on the day the outstanding
Obligations are due and payable pursuant to paragraph 9.3.



<P align="left" style="margin-left:6%; font-size: 10pt">&#147;Interest Period&#148; means, as to each Eurodollar Rate Loan, the
period commencing on the date such Eurodollar Rate Loan is
disbursed or converted to or continued as a Eurodollar Rate
Loan and ending on the date one, two, three or six months
thereafter, as selected by Borrower in its notice to the
Agent; provided that:



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(i) any Interest Period that would otherwise end on a
day that is not a Business Day shall be extended to the next
succeeding Business Day unless, such Business Day falls in
another calendar month, in which case such Interest Period
shall end on the next preceding Business Day;



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(ii) any Interest Period that begins on the last
Business Day of a calendar month (or on a day for which there
is no numerically corresponding day in the calendar month at
the end of such Interest Period) shall end on the last
Business Day of the calendar month at the end of such
Interest Period; and


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<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(iii) no Interest Period shall extend beyond the last
day of the Contract Term.



<P align="left" style="margin-left:6%; font-size: 10pt">&#147;Tranche&#148; means any portion of the Facility the principal
amount of which is subject to the Eurodollar Rate designated
as provided by paragraph 3.1.2, <I>provided </I>that no Tranche may
exist with respect to any principal amount less than
$500,000.00.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 Computation of Interest and Fees. All computations of interest for
Base Rate Loans when Base Rate is determined by Bank of America&#146;s &#147;prime rate&#148;
shall be made on the basis of a year of 365 or 366&nbsp;days, as the case may be,
and actual days elapsed. Subject to paragraph 11.8, all other computations of
fees and interest shall be made on the basis of a 360-day year and actual days
elapsed (which results in more fees or interest, as applicable, being paid than
if computed on the basis of a 365-day year). Interest shall accrue on each
Loan for the day on which the Loan is made, and shall not accrue on a Loan, or
any portion thereof, for the day on which the Loan or such portion is paid,
provided that any Loan that is repaid on the same day on which it is made
shall, subject to paragraph 4.1, bear interest for one day. Each determination
by Administrative Agent of an interest rate or fee hereunder shall be
conclusive and binding for all purposes, absent manifest error.


<P align="center" style="font-size: 10pt">ARTICLE IV. PAYMENT



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 Method of Payment. All payments of principal, interest, fees and
other amounts to be made by Borrower under this Agreement and the other Loan
Documents shall be made to Agent at the Principal Office for the account of
each Lender in Dollars and in immediately available funds, without setoff
deduction or counterclaim, not later than 1:00 p.m. (Dallas, Texas time) on the
date on which such payment shall become due (each such payment made after such
time on such due date to be deemed to have been made on the next succeeding
Business Day). Borrower shall, at the time of making each such payment, specify
to Agent the sums payable by Borrower under this Agreement and the other Loan
Documents to which such payment is to be applied (and in the event that
Borrower fails to so specify, or if an Event of Default has occurred and is
continuing, Agent may apply such payment to the Obligations in such order and
manner as Agent may elect, subject to paragraph 4.2). Upon the occurrence and
during the continuation of an Event of Default, all funds of Borrower or any
Guarantor in the possession of Agent or any Lender, may be applied by Agent to
the Obligations in such order and manner as Agent may elect, subject to
paragraph 4.2. Each payment received by Agent under this Agreement or any
other Loan Document for the account of a Lender shall be paid promptly to such
Lender, in immediately available funds, for the account of such Lender.
Whenever any payment under this Agreement or any other Loan Document shall be
stated to be due on a day that is not a Business Day, such payment may be made
on the next succeeding Business Day, and such extension of time shall in such
case be included in the computation of the payment of interest and commitment
fee, as the case may be.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 Pro Rata Treatment. Except to the extent otherwise provided in this
Agreement: (a)&nbsp;each Loan shall be made by the Lenders under paragraph 2.1, each
payment of commitment fees under paragraph 2.8 shall be made for the account of
the Lenders, and each termination or reduction of the Commitments under
paragraph 2.9 shall be applied to the Commitments of the


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<P align="left" style="font-size: 10pt">Lenders, pro rata according to the respective unused Commitments; (b)&nbsp;the
making, conversion and continuation of Loans of a particular type shall be made
pro rata among the Lenders holding Loans of such type according to the amounts
of their respective Commitments; (c)&nbsp;each payment and prepayment by Borrower of
principal of or interest on Loans of a particular type shall be made to Agent
for the account of the Lenders holding Loans of such type pro rata in
accordance with the respective unpaid principal amounts of such Loans held by
such Lenders; (d)&nbsp;Interest Periods for Loans of a particular type shall be
allocated among the Lenders holding Loans of such type pro rata according to
the respective principal amounts held by such Lenders; and (e)&nbsp;the Lenders
(other than the applicable Issuing Bank) shall purchase participations in the
Letters of Credit pro rata in accordance with their Commitment Percentages.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 Sharing of Payments, Etc. If a Lender shall obtain payment of any
principal of or interest on any of the Obligations due to such Lender hereunder
through the exercise of any right of setoff, banker&#146;s lien, counterclaim or
similar right, or otherwise, it shall promptly purchase from the other Lenders
participations in the Obligations held by the other Lenders in such amounts,
and make such adjustments from time to time, as shall be equitable to the end
that all of the Lenders shall share pro rata in accordance with the unpaid
principal and interest on the Obligations then due to each of them. To such
end, all of the Lenders shall make appropriate adjustments among themselves (by
the resale of participations sold or otherwise) if all or any portion of such
excess payment is thereafter rescinded or must otherwise be restored. Each of
Borrower and each other Loan Party agrees, to the fullest extent it may
effectively do so under applicable law, that any Lender so purchasing a
participation in the Obligations by the other Lenders may exercise all rights
of setoff, banker&#146;s lien, counterclaim or similar rights with respect to such
participation as fully as if such Lender were a direct holder of Obligations in
the amount of such participation. Nothing contained herein shall require any
Lender to exercise any such right or shall affect the right of any Lender to
exercise, and retain the benefits of exercising, any such right with respect to
any other indebtedness, liability or obligation of Borrower or any other Loan
Party.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 Non-Receipt of Funds by Agent. Unless Borrower or any Lender has
notified Agent, prior to the date any payment is required to be made by it to
Agent hereunder, that Borrower or such Lender, as the case may be, will not
make such payment, Agent may assume that Borrower or such Lender, as the case
may be, has timely made such payment and may (but shall not be so required to),
in reliance thereon, make available a corresponding amount to the Person
entitled thereto. If and to the extent that such payment was not in fact made
to Agent in immediately available funds, then:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(a) if Borrower failed to make such payment, each Lender shall
forthwith on demand repay to Agent the portion of such assumed payment
that was made available to such Lender in immediately available funds,
together with interest thereon in respect of each day from and including
the date such amount was made available by Agent to such Lender to the
date such amount is repaid to Agent in immediately available funds, at
the Federal Funds Rate from time to time in effect; and



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(b) if any Lender failed to make such payment, such Lender shall
forthwith on demand pay to Agent the amount thereof in immediately
available funds, together with interest thereon for the period from the
date such amount was made available by Agent to


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<P align="left" style="margin-left:3%; font-size: 10pt">Borrower to the date such amount is recovered by Agent (the
&#147;Compensation Period&#148;) at a rate per annum equal to the Federal Funds
Rate from time to time in effect. If such Lender pays such amount to
Agent, then such amount shall constitute such Lender&#146;s Loan included in
the applicable borrowing. If such Lender does not pay such amount
forthwith upon Agent&#146;s demand therefor, Agent may make a demand therefor
upon Borrower, and Borrower shall pay such amount to Agent, together with
interest thereon for the Compensation Period at a rate per annum equal to
the rate of interest applicable to the applicable borrowing. Nothing
herein shall be deemed to relieve any Lender from its obligation to
fulfill its Commitment or to prejudice any rights which Agent or Borrower
may have against any Lender as a result of any default by such Lender
hereunder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A notice of Agent to any Lender or Borrower with respect to any amount
owing under this paragraph 4.4 shall be conclusive, absent manifest error.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 Return of Funds. If any Lender makes available to Agent funds for any
Loan to be made by such Lender as provided in the foregoing provisions of this
Article&nbsp;IV, and such funds are not made available to Borrower by Agent because
the conditions to the applicable Loan or Letter of Credit set forth in Article
V are not satisfied or waived in accordance with the terms hereof, Agent shall
promptly return such funds (in like funds as received from such Lender) to such
Lender, without interest.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 Withholding Taxes.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(a) All payments by Borrower of principal of and interest on
the Loans and the L/C Obligations and of all fees and other amounts
payable under the Loan Documents shall be made free and clear of,
and without deduction by reason of, any present or future taxes,
levies, duties, imposts, assessments or other charges levied or
imposed by any Governmental Authority (other than taxes on the
overall net income of any Lender). If any such taxes, levies,
duties, imposts, assessments or other charges are so levied or
imposed, Borrower will (i)&nbsp;make additional payments in such amounts
so that every net payment of principal of and interest on the Loans
and the L/C Obligations and of all other amounts payable by it
under the Loan Documents, after withholding or deduction for or on
account of any such present or future taxes, levies, duties,
imposts, assessments or other charges (including any tax imposed on
or measured by net income of a Lender attributable to payments made
to or on behalf of a Lender pursuant to this paragraph 4.6 and any
penalties or interest attributable to such payments), will not be
less than the amount provided for herein or therein absent such
withholding or deduction (provided that Borrower shall not have any
obligation to pay such additional amounts to any Lender to the
extent that such taxes, levies, duties, imposts, assessments or
other charges are levied or imposed by reason of the failure of
such Lender to comply with the provisions of paragraph 4.7), (ii)
make such withholding or deduction and (iii)&nbsp;remit the full amount
deducted or withheld to the relevant Governmental Authority in
accordance with applicable law. Without limiting the generality of
the foregoing, Borrower will, upon written request of any Lender,
reimburse each such Lender for the amount of (A)&nbsp;such taxes,
levies, duties, imports, assessments or other charges so levied or
imposed by any


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<P align="left" style="margin-left:6%; font-size: 10pt">Governmental Authority and paid by such Lender as a result of
payments made by Borrower under or with respect to the Loans other
than such taxes, levies, duties, imports, assessments and other
charges previously withheld or deducted by Borrower which have
previously resulted in the payment of the required additional
amount to such Lender, and (B)&nbsp;such taxes, levies, duties,
assessments and other charges so levied or imposed with respect to
any Lender reimbursement under the foregoing clause A, so that the
net amount received by such Lender (net of payments made under or
with respect to the Loans and the L/C Obligations) after such
reimbursement will not be less than the net amount such Lender
would have received if such taxes, levies, duties, assessments and
other charges on such reimbursement had not been levied or imposed.
Borrower shall furnish promptly to Agent for distribution to each
affected Lender, as the case may be, upon request of such Lender,
official receipts evidencing any such payment, withholding or
reduction.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(b) Borrower will indemnify Agent and each Lender (without
duplication) against, and reimburse Agent and each Lender for, all
present and future taxes, levies, duties, imposts, assessments or
other charges (including interest and penalties) levied or
collected (whether or not legally or correctly imposed, assessed,
levied or collected), excluding, however, any taxes imposed on the
overall net income of Agent or such Lender or any lending office of
Agent or such Lender by any jurisdiction in which Agent or such
Lender or any such lending office is located, on or in respect of
this Agreement, any of the Loan Documents or the Obligations or any
portion thereof (the &#147;reimbursable taxes&#148;). Any such
indemnification shall be on an after-tax basis, taking into account
any such reimbursable taxes imposed on the amounts paid as
indemnity. Payment under this paragraph 4.6(b) shall be made
within 30&nbsp;days after the date Lender or Agent makes demand
therefor.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(c) Without prejudice to the survival of any other term or
provision of this Agreement, the obligations of Borrower under this
paragraph 4.6 shall survive the payment of the Loans and the other
Obligations and termination of the Commitments.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 Withholding Tax Exemption. Each Lender that is not incorporated or
otherwise formed under the laws of the U.S. or a state thereof agrees that it
will, prior to or on or about the Effective Date or the date upon which it
becomes a party to this Agreement and if it is legally able to do so, deliver
to Borrower and Agent two duly completed copies of U.S. Internal Revenue
Service Form W-8BEN or W-8ECI, as appropriate, certifying in any case that such
Lender is entitled to receive payments from Borrower under any Loan Document
without deduction or withholding of any U.S. federal income taxes. Each Lender
which so delivers a Form W-8BEN or W-8ECI further undertakes to deliver to
Borrower and Agent two additional copies of such form (or a successor form) on
or before the date such form expires or becomes obsolete or after the
occurrence of any event requiring a change in the most recent form so delivered
by it, and such amendments thereto or extensions or renewals thereof as may be
reasonably requested by Borrower or Agent, in each case certifying that such
Lender is entitled to receive payments from Borrower under any Loan Document
without deduction or withholding


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<P align="left" style="font-size: 10pt">of any U.S. federal income taxes, unless an event (including without
limitation any change in treaty, law or regulation) has occurred prior to the
date on which any such delivery would otherwise be required which renders all
such forms inapplicable or which would prevent such Lender from duly completing
and delivering any such form with respect to it and such Lender advises
Borrower and Agent that it is not capable of receiving such payments without
any deduction or withholding of U.S. federal income tax.



<P align="center" style="font-size: 10pt">ARTICLE V. CONDITIONS



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 Items to be Delivered by Borrower. Prior to or simultaneously with
execution and delivery hereof, Borrower shall deliver, or cause to be
delivered, to Agent the following items:



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(a) Certificates of Limited Partnership, Limited Partnership
Agreements, Articles of Incorporation and Certificates of
Existence. A copy of the certificate of limited partnership and
agreement of limited partnership, or articles of incorporation, and
all amendments thereto, as appropriate, of Borrower and each
Guarantor accompanied by the certificate of the appropriate
official of their respective states of organization or
incorporation, as appropriate, bearing a date no more than ten (10)
days prior to the date hereof, to the effect that such copies,
respectively, are correct and complete and that Borrower and each
Guarantor, as the case may be, is a limited partnership or
corporation, as appropriate, duly incorporated and validly existing
in such state, and certified by the corporate secretary of the
general partner of Borrower and of each Guarantor, as the case may
be, dated the date hereof, as being correct and complete as of the
date hereof.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(b) Good Standing. Certification by the appropriate official
of the state of incorporation of each Guarantor bearing a date no
more than ten (10)&nbsp;days prior to the date hereof, to the effect
that each Guarantor is in good standing with respect to payment of
franchise and similar taxes, and certification by the Comptroller
of Public Accounts of the State of Texas for each Guarantor which
is required to be qualified to do business in the State of Texas
bearing a date no more than thirty (30)&nbsp;days prior to the date
hereof confirming that such Guarantor is duly qualified to transact
business in the State of Texas and in good standing. Borrower
represents that to the extent required by applicable law, Borrower
and each Guarantor each is qualified or licensed to transact
business in all jurisdictions in which operates or conducts
business.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(c) By-Laws. A copy of the bylaws, and all amendments thereto
of each Guarantor, accompanied by certificates from their
respective corporate secretary, dated the date hereof, to the
effect that such copy is correct and complete as of the date
hereof.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(d) Incumbency. Certification of incumbency of all officers
of each Guarantor (specifically including those of EWC GP in its
capacity as general partner of Borrower), executed by the president
or vice president and by the


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<P align="left" style="margin-left:6%; font-size: 10pt">corporate secretary, as of the effective date hereof,
certifying the name and signature of each such officer.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(e) Resolutions. A copy of corporate resolutions of EWC GP as
general partner of Borrower and of each other Guarantor approving
this Agreement, authorizing the transactions contemplated hereby,
and authorizing and directing a named officer or officers to sign
and deliver all Loan Documents to be executed, duly adopted by its
board of directors, accompanied by the certificate of the corporate
secretary thereof, dated the date hereof, that such copy is a true
and complete copy of resolutions duly adopted by such board of
directors, and that such resolutions have not been amended,
modified, or revoked in any respect and are in full force and
effect as of the date hereof. Such resolutions shall be in form
and substance satisfactory to Agent, and in the case of each
Guarantor, shall include a <I>bona fide </I>finding by its board of
directors that execution, delivery and performance of each Loan
Document to which such Guarantor is a party is expected to directly
and indirectly benefit such Guarantor.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(f) Credit Agreement. This Agreement, duly executed.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(g) Revolving Notes. The Revolving Notes to be delivered to
all Lenders, duly executed.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(h) Guaranties. The Guaranties, duly executed by each
Guarantor.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(i) Responsible Officer Certificate &#151; Closing. A certificate
signed by a Responsible Officer of Borrower certifying (A)&nbsp;that the
conditions specified in paragraphs 5.2(c) and (d)&nbsp;have been
satisfied, and (B)&nbsp;that there has been no event or circumstance
since December&nbsp;31, 2003 that has had or could be reasonably
expected to have, either individually or in the aggregate, a
Material Adverse Effect.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(j) Insurance. Evidence of insurance in compliance with the
requirements of paragraph 7.23.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(k) Affiliate Subordination Agreements. All Affiliate
Subordination Agreements, if any, required by Agent under paragraph
7.18.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(l) Opinion of Borrower&#146;s and Guarantors&#146; Counsel. An opinion
of counsel for Borrower and each Guarantor, in form and substance
satisfactory to Agent.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(m) Fees. All fees required to be paid on or before the
Effective Date shall have been paid.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(n) Note Purchase Agreement. Agent shall have received the
executed Note Purchase Agreement, the terms and conditions of which
shall be reasonably satisfactory to Agent.


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<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(o) Other Documents. Such other items as Agent may reasonably
request in order to perfect or protect its interests and rights
under the Loan Documents.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 Loans and Letters of Credit Under Facility. As a condition to each
Loan and L/C Credit Extension under the Facility, each of the following
requirements must be satisfied in Agent&#146;s discretion: (a)&nbsp;Borrower shall be
current with respect to the delivery of Borrowing Base Reports and all items as
required under paragraph 5.1, and the Borrowing Base must be confirmed by
Agent, (b)&nbsp;the amount of Loans or Letter of Credit requested does not exceed
the Availability as of the date of such Loans or Letter of Credit, (c)&nbsp;all
representations and warranties contained in Article&nbsp;VI shall be true, correct
and complete in all material respects except as supplemented pursuant to
paragraph 7.12, and (d)&nbsp;no Default or Event of Default shall have occurred and
be continuing, or shall result from such Loans or Letter of Credit, and no
other event or condition which is reasonably expected to result in a Material
Adverse Effect shall be in existence. Any request for Loans or a Letter of
Credit under the Facility at a time when any of the foregoing requirements is
not satisfied may be declined by Agent without prior notice.


<P align="center" style="font-size: 10pt">ARTICLE VI. REPRESENTATIONS AND WARRANTIES



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower hereby represents and warrants to Agent and the Lenders as
follows:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 Corporate Name; Trade Names. Borrower is conducting, transacting, and
carrying on its business under its corporate name as designated in paragraph
1.18, and under the name &#147;Encore Wire,&#148; and is not engaged in business under
any other name.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 Chief Executive Office. Borrower&#146;s chief executive office is located
at the address specified for Borrower in paragraph 1.18.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 Partnership and Corporate Existence. Borrower is a limited
partnership, validly existing under the laws of the State of Texas, and is duly
qualified or licensed to transact business in all jurisdictions the laws of
which require it to be so qualified or licensed. Each Guarantor is a
corporation, duly incorporated, validly existing, and in good standing under
the laws of the State of Delaware, and is duly qualified or licensed to
transact business in all jurisdictions the laws of which require it to be so
qualified or licensed.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 Partnership and Corporate Power and Authority; Validity. Borrower
possesses all requisite partnership power and authority to own, lease and
operate its properties and to carry on its business and to execute, deliver,
and comply with the Loan Documents to which it is a party. Each Guarantor
possesses all requisite corporate power and authority to own, lease and operate
its properties and to carry on its business and to execute, deliver, and comply
with the Loan Documents to which it is a party. Each of the Loan Documents has
been duly authorized by all necessary partnership and/or corporate action, as
appropriate, and has been duly executed and delivered by Borrower and each
Guarantor, as appropriate, and evidences valid and binding obligations of
Borrower and each Guarantor, as appropriate, enforceable such Persons in
accordance with its respective terms.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 No Conflicting Agreements; No Consents. The execution, delivery and
performance of the Loan Documents will not violate its certificate of limited
partnership or its


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<P align="left" style="font-size: 10pt">limited partnership agreement or the articles of incorporation or bylaws
of any Guarantor, nor constitute a default under, or result in a breach of, any
contract, agreement, or other instrument to which any such Person is a party or
which is applicable to any such Person&#146;s property. No consents, licenses or
approvals not already obtained are required in connection with the execution,
delivery and performance by Borrower or any Guarantor, or the validity against
Borrower or any Guarantor, of the Loan Documents to which it is a party.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 Share Ownership of Parent. Each of the Parent&#146;s outstanding shares
has been duly and validly issued and is fully paid and nonassessable. There
are no subscriptions, options to purchase, conversion or exchange rights,
warrants or other agreements, claims or commitments of any nature obligating
Parent to issue, transfer, deliver or sell additional shares of its capital
stock, other than as previously disclosed to Agent in writing.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 EWC GP, EWC LP and Aviation. <B>Schedule&nbsp;6.7 </B>is a true and correct copy
of the following with respect to each of EWC GP, EWC LP and Aviation: (i)
jurisdiction of incorporation, (ii)&nbsp;number of shares of stock of each class
authorized, (iii)&nbsp;the number of shares of each class of stock outstanding and
(iv)&nbsp;the ownership, the number, and the percentage, of each such class of
outstanding shares owned. Parent has no Subsidiaries other than Borrower, EWC
GP, EWC LP and Aviation. All outstanding shares of stock of each of EWC GP,
EWC LP and Aviation have been validly issued and are fully paid and
non-assessable, and all such shares are owned by Parent free and clear of any
lien, pledge, security interest or other encumbrance.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 Ownership of Borrower. EWC GP owns a one percent (1%) general
partnership interest in Borrower and is the sole general partner of Borrower;
and, EWC LP owns a ninety-nine percent (99%) limited partnership interest in
Borrower and is the sole limited partner of Borrower. Each of EWC GP and EWC
LP owns its partnership interest in Borrower free and clear of any lien,
pledge, security interest or other encumbrance.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 Location of Books and Records. All of its books and records are
located at Borrower&#146;s chief executive office designated in paragraph 1.18, and
at such other locations where Inventory is maintained. Borrower agrees that it
will notify Agent if it maintains such books and records at any other location<B>,</B>
and will provide Agent, upon request, with a report of the location of its
Inventory, which report shall be delivered to Agent within fifteen (15)&nbsp;days
after such request.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10 Receivables, Inventory Free and Clear. No security interests, liens
or other encumbrances exist with respect to any of the Receivables or
Inventory, except for Permitted Encumbrances.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.11 Financial Statements. Borrower has delivered to Agent financial
statements respecting its financial condition and operations for Agent&#146;s review
and reliance in connection with approving the Facility. All of such financial
statements were prepared in accordance with GAAP, and are correct and complete,
and fairly present the financial condition of Borrower on the respective dates
thereof and the results of its operations for the respective periods then
ended. There has been no material adverse change in the business, properties or
financial condition of Borrower since the dates of such financial statements,
respectively.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.12 Litigation. Other than as disclosed to Agent in <B>Schedule&nbsp;6.12,</B>
neither Borrower nor any Guarantor is a party to any pending lawsuits or
proceedings before or by any state or federal court or governmental agency or
instrumentality, and is not aware of any threatened or potential lawsuits,
proceedings, claims, or investigations with respect to such Persons that could
reasonably be expected, if adversely determined, to have a Material Adverse
Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.13 Compliance with Laws. Neither Borrower nor any Guarantor is in
violation of any laws, regulations and orders in any respect which will result
in or cause, or reasonably would be expected to result in or cause, a Material
Adverse Effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.14 Judgments. There are no outstanding or unpaid judgments against
Borrower or any Guarantor.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.15 Taxes. Except as set forth in <B>Schedule&nbsp;6.15, </B>all tax returns or
filings required to be filed by Borrower and each Guarantor have been filed and
all taxes imposed upon Borrower and each Guarantor which are due and payable
have been paid.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.16 Title to Property. Borrower has good and marketable title to all
property reflected in the financial statements previously delivered to Agent or
purported to have been acquired since such date, except property sold or
otherwise disposed of subsequent to such date in the ordinary course of
business. Borrower possesses all patents, patent rights, licenses, trademarks,
trademark rights, trade names, trade name rights, and copyrights which are
required to conduct its business as now conducted without any known
infringement or conflict by or against the rights of any Person. All such
property is owned by Borrower free and clear of any lien, pledge, security
interest or other encumbrance except for Permitted Encumbrances and liens for
indebtedness permitted by paragraph 7.22.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.17 Consents. No governmental orders, permissions, consents, approvals
or authorizations are required to be obtained and no registrations or
declarations are required to be filed in connection with the execution,
delivery and performance of the Loan Documents. Borrower and each Guarantor has
all required governmental permits and licenses, if any, on account of its
operations and activities and is in full compliance with the terms and
conditions thereof, and all such permits and licenses are in full force and
effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.18 Full Disclosure. Borrower has disclosed to Agent all material facts
known to Borrower concerning its and each Guarantor&#146;s financial condition and
business operations. All information furnished by Borrower to Agent was true
and complete at the time of delivery thereof to Agent, and there has been no
material change in any such information except as may have been disclosed by
Borrower to Agent in writing. There is no fact known to Borrower which would
be reasonably expected to result in a Material Adverse Effect during the term
of this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.19 Solvency. (i)&nbsp;the fair saleable value of all assets of Borrower and
its Subsidiaries exceeds the amount of all of Borrower&#146;s and its Subsidiaries&#146;
existing debts and liabilities (including contingent liabilities), (ii)&nbsp;the
assets of Borrower and its Subsidiaries do not constitute an unreasonably small
capital for the operation of Borrower&#146;s and its Subsidiaries&#146; business as now
conducted and as intended to be conducted, taking into account all known or
projected


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<P align="left" style="font-size: 10pt">capital requirements for such operations, (iii)&nbsp;neither Borrower nor any
of its Subsidiaries intend to incur debts beyond their respective ability to
pay as they mature, and (iv)&nbsp;Borrower&#146;s and its Subsidiaries&#146; consolidated cash
flow is sufficient to pay all existing debts and liabilities as they become
due.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.20 Employee Relations. Borrower is not aware of any contemplated,
threatened or pending strike, work stoppage or other labor dispute involving
its employees or the employees of any Affiliate.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.21 Employee Benefit Plan. Neither Borrower nor any of its ERISA
Affiliates, nor any Plan, is in material violation in form or in operation of
any provision of ERISA or any other applicable state or federal law, including
the requirements of the IRC. No Prohibited Transaction or Reportable Event has
occurred with respect to any Plan which reasonably would be expected to result
in a Material Adverse Effect. No notice of intent to terminate a Plan under
Title IV of ERISA has been filed within the 24-month period preceding the date
hereof, nor has any Plan been terminated under Section 4041(c) of ERISA since
September&nbsp;2, 1974. The PBGC has not instituted proceedings to terminate or
appoint a trustee to administer a Plan, and no event has occurred and no
condition exists which might constitute grounds under Section&nbsp;4042 of ERISA for
the termination of, or the appointment of a trustee to administer, any Plan.
Neither Borrower nor any ERISA Affiliate has incurred or expects to incur any
withdrawal liability to any multiemployer plan within the meaning of Section&nbsp;3
(37)&nbsp;or Section&nbsp;3001(a)(3) of ERISA or Section&nbsp;414 of the IRC. Neither
Borrower nor any ERISA Affiliate has any obligation to provide medical benefits
or coverage to any former employee other than as required under Section&nbsp;4980B
of the IRC or Part&nbsp;6 of Title I of ERISA. Each Employee Benefit Plan subject
to Section&nbsp;4980B of the IRC has satisfied the applicable requirements of
Section&nbsp;4980B of the IRC. Each Plan meets the minimum funding requirements of
IRC Section&nbsp;412 and no waiver from the minimum funding requirements has been
applied for or approved pursuant to Section 412(d) of the IRC. The reporting
and disclosure requirements of each Plan have been timely and completely
satisfied. Neither Borrower, any ERISA Affiliate nor any fiduciary of any Plan
has engaged in conduct that would be a breach of any duty under Part&nbsp;4,
Subtitle B, Title I of ERISA. There are no actions, suits or claims pending
(other than routine claims for benefits) or, to the knowledge of Borrower or
any ERISA Affiliate, threatened against, or with respect to, any Plan or its
assets, if any. Each Plan which is a &#147;welfare benefit plan,&#148; as described in
Section&nbsp;3(1) of ERISA, may be unilaterally amended or terminated in its
entirety without liability except as to benefits accrued prior to such
amendment. Termination of employment of any employee of Borrower or any ERISA
Affiliate would not result in payments which, in the aggregate, would result in
imposition of the sanctions imposed under Section&nbsp;280G or Section&nbsp;4999 of the
IRC.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.22 Environmental Matters. To the best of Borrower&#146;s knowledge: (a)&nbsp;all
of Borrower&#146;s activities and conduct of business related to the use and
handling of Hazardous Materials, comply and have at all times complied in all
material respects with all Environmental Requirements; (b)&nbsp;none of the Parent,
the Borrower or their Subsidiaries, has received notice or other communication
concerning any alleged violation of Environmental Requirements, whether or not
corrected to the satisfaction of the appropriate authority, or notice or other
communication concerning alleged liability for Environmental Damages, and there
exists no writ, injunction, decree, order, judgment or lien, nor any lawsuit,
claim, proceeding citation, directive, summons or investigation, pending or
threatened, relating to the ownership, use, maintenance or operation


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<P align="left" style="font-size: 10pt">of Borrower&#146;s business or any associated real property, by any Person, or
from alleged violation of Environmental Requirements; (c)&nbsp;Borrower has all
permits and licenses required to be issued to it by any governmental authority
on account of any or all of its activities, and is in compliance in all
material respects with the terms and conditions of all such permits and
licenses. No change in the facts or circumstances reported or assumed in the
application for or granting of any such permits or licenses exists, and such
permits and licenses are in full force and effect.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.23 Representations and Warranties Cumulative. The representations and
warranties contained in this Article&nbsp;VI are in addition to all other
representations and warranties provided in the Loan Documents.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.24 No Default. No Default has occurred and is continuing or would
result from the consummation of the transactions contemplated by this Agreement
or any other Loan Document.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.25 Insurance. The properties of Borrower and its Subsidiaries are
insured with financially sound and reputable insurance companies not Affiliates
of Borrower, in such amounts, after giving effect to any self-insurance
compatible with the following standards, with such deductibles and covering
such risks as are customarily carried by companies engaged in similar
businesses and owning similar properties in localities where Borrower or the
applicable Subsidiary operates.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.26 Margin Regulations; Investment Company Act; Public Utility Company
Act.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Borrower is not engaged and will not engage, principally or as one
of its important activities, in the business of purchasing or carrying margin
stock (within the meaning of Regulation&nbsp;U issued by the FRB), or extending
credit for the purpose of purchasing or carrying margin stock.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;None of (i)&nbsp;Borrower, (ii)&nbsp;any Person possessing, directly or
indirectly, the power to direct or cause the direction of the management or
policies of Borrower, or (iii)&nbsp;any Subsidiary (x)&nbsp;is a &#147;holding company,&#148; or a
&#147;subsidiary company&#148; of a &#147;holding company,&#148; or an &#147;affiliate&#148; of a &#147;holding
company,&#148; within the meaning of the Public Utility Holding Company Act of 1935,
or (y)&nbsp;is or is required to be registered as an &#147;investment company&#148; under the
Investment Company Act of 1940.


<P align="center" style="font-size: 10pt">ARTICLE VII. COVENANTS



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Throughout the Contract Term and until payment and performance in full of
the Obligations, Borrower agrees as follows (unless otherwise allowed by prior
written consent of Agent):


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 Compliance Certificate. Within forty-five (45)&nbsp;days following the end
of each fiscal quarter, Borrower shall deliver to Agent a certificate signed by
the president or chief financial officer of EWC GP in its capacity as the
general partner of Borrower certifying to Agent that no event or condition that
would be the subject of a required notice under paragraph 7.12 or paragraph
7.13 is in existence as of the date of such certificate. Such certificate
shall be deemed to be a continuing representation and warranty pending any
subsequent certification or


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<P align="left" style="font-size: 10pt">notification by Borrower respecting its compliance or non-compliance with
this Agreement, and Borrower acknowledges that Agent shall rely upon the same
in making loans under the Facility.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 Authority. Immediately following any effective change thereof (and at
such other times, from time to time, at the request of Agent) Borrower shall
certify to Agent the names and signatures of all Persons authorized to execute
and deliver Borrowing Base Reports to Agent and any other documentation
contemplated by or relating to any of the Loan Documents.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 Books and Records; Inspection.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;7.3.1 Books and Records. Borrower shall keep and maintain proper,
complete and consistent books of record and account respecting Borrower&#146;s
affairs and financial condition in accordance with GAAP consistently
applied and in material conformity with all applicable requirements of
any Governmental Authority having regulatory jurisdiction over Borrower.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;7.3.2 Inspection. Agent shall have the right without hindrance or
delay to conduct field examinations to inspect, audit and copy Borrower&#146;s
books, records, journals, correspondence and other records and data
relating to Borrower&#146;s business and its properties. During normal
business hours, Agent is authorized to discuss Borrower&#146;s affairs with
any Person, including without limitation employees of Borrower, as Agent
may deem necessary in relation to Borrower&#146;s financial condition or
Agent&#146;s rights under the Loan Documents. To the extent not prohibited
under the terms of Borrower&#146;s agreement with any credit reporting
service, bureau or similar service, Agent shall have full access to all
records available to Borrower from such credit reporting service, bureau
or similar service and shall have the right to examine and make copies of
any such records. Agent may exhibit a copy of this Agreement to such
service and such service shall be entitled to rely on the provisions
hereof in providing access to Agent as provided herein. If an Event of
Default exists, the Agent may do any of the foregoing at the expense of
the Borrower.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 Existence and Maintenance of Properties. Borrower and each Guarantor
shall (a)&nbsp;preserve and maintain its partnership or corporate existence, as
appropriate, and shall maintain its good standing and authority to transact
business in all jurisdictions where necessary for the proper conduct of its
business; (b)&nbsp;maintain all of its rights, permits, licenses, privileges and
franchises necessary or desirable in the normal conduct of its business; (c)
maintain, preserve and protect all of its material properties and equipment
necessary in the operation of its business in good working order and condition,
ordinary wear and tear excepted; and (d)&nbsp;use the standard of care typical in
the industry in the operation and maintenance of its facilities.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 Annual Financial Statements. Borrower shall deliver to Agent, as soon
as practicable after the end of each fiscal year, and in any event within one
hundred forty-five (145)&nbsp;days thereafter, its unqualified audited consolidated
and consolidating balance sheet as of the end of such fiscal year, and its
audited consolidated and consolidating statement of income and retained
earnings and consolidated and consolidating statements of cash flow, in
reasonable detail, prepared in accordance with GAAP and certified by an
independent certified public accounting firm acceptable to Agent as fairly
presenting Borrower&#146;s financial condition and


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<P align="left" style="font-size: 10pt">results of operations. Such financial statements shall be accompanied by
a copy of the report to management delivered to Borrower by such accountants
and also by a statement signed by the president or chief financial officer of
EWC GP in its capacity as general partner of Borrower representing to Agent
that such financial statements are true and complete and fairly present
Borrower&#146;s financial condition and results of operation, and that no event or
condition that would be the subject of a required notice under paragraph 7.12
or paragraph 7.13 is in existence as of the date of delivery of such
statements.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 Interim Financial Statements. Borrower shall deliver to Agent, as
soon as practicable after the end of each Fiscal Quarter and in any event
within forty-five (45)&nbsp;days thereafter, a consolidated and consolidating
balance sheet as of the end of such quarter, and consolidated and consolidating
income statement for such quarter and for the period from the beginning of the
current fiscal year to the end of such quarter, in reasonable detail and
prepared in accordance with GAAP. Such financial statements shall be
accompanied by a statement signed by the president or chief financial officer
of EWC GP in its capacity as general partner of Borrower representing to Agent
that such financial statements are true and complete and fairly present
Borrower&#146;s financial condition and results of operations, and that no event or
condition that would be the subject of a required notice under paragraph 7.12
or paragraph 7.13 is in existence as of the date of delivery of such
statements.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7 SEC Filings. Borrower shall deliver to Agent a correct and complete
copy of (i)&nbsp;each Form 10-K Report of Parent filed with the Securities and
Exchange Commission, which shall be delivered to Agent as soon as possible upon
filing thereof and in any event within one hundred forty-five (145)&nbsp;days after
the end of each fiscal year of Parent, (ii)&nbsp;each Form 10-Q Report of Parent
filed with the Securities and Exchange Commission, which shall be delivered to
Agent as soon as possible upon filing thereof and in any event within
forty-five (45)&nbsp;days after the end of each fiscal quarter of Parent, (iii)&nbsp;each
other filing from time to time to be made with the Securities and Exchange
Commission, which shall be delivered to Agent as soon as possible upon filing
thereof, and (iv)&nbsp;each IRS Form&nbsp;8886 or any successor form, which shall be
delivered to Agent promptly after the Borrower has notified the Agent of any
intention by the Borrower to treat the Loans and/or Letters of Credit and
related transactions as being a &#147;reportable transaction&#148; (within the meaning of
Treasury Regulation&nbsp;Section&nbsp;1.6011-4).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8 Borrowing Base Reports. No later than the thirtieth (30th) day after
the last day of each calendar quarter, and at such other times as Agent may
request, Borrower shall execute and deliver to Agent, in form satisfactory to
Agent and Borrower, a Borrowing Base Report setting forth a certification of
Eligible Accounts and Eligible Inventory as of the last day of such calendar
quarter and such other date as may be specified in such other Borrowing Base
Reports Borrower may deliver to Agent, and calculation of the Borrowing Base.
Each Borrowing Base Report shall include a reconciliation of the calculation of
the Borrowing Base as certified in the most recent Borrowing Base Report
delivered to Agent, and be accompanied by such documents and supporting
information relating to Eligible Accounts and Eligible Inventory as Agent may
request. Each Borrowing Base Report shall include a reconciliation of the
calculation of the Borrowing Base as certified in the most recent Borrowing
Base Report delivered to Agent, and be accompanied by such documents and
supporting information relating to Eligible Accounts and Eligible Inventory as
Agent may request. Borrower shall maintain, and shall furnish to Agent at
Agent&#146;s request, such supporting documents or copies as Agent may require
including,


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<P align="left" style="font-size: 10pt">but not limited to: a schedule of Eligible Accounts created, and Eligible
Inventory purchased and received, since the previous Borrowing Base Report
delivered to Agent; copies of invoices and supporting delivery or service
records in connection therewith; a schedule of collections received; copies of
credit memos or other advices of credit or reductions against amounts
previously billed; and such other reports as Agent may request from time to
time. If any of such records or reports are prepared by an accounting service
or other agent, Borrower hereby authorizes such service or agent to deliver
such records, reports and related documents to Agent. Agent may exhibit a copy
of this Agreement to any such service or agent and such service or agent shall
be entitled to rely on the provisions hereof in providing such documentation to
Agent. Each Borrowing Base Report shall bear a signed statement by an
authorized officer of EWC GP in its capacity as general partner of Borrower
certifying the accuracy and completeness of all information included therein
and shall incorporate therein by reference, as if fully set forth therein, all
the terms and provisions hereof. The execution and delivery of a Borrowing Base
Report shall in each instance constitute an agreement, representation and
warranty by Borrower to Agent that: Borrower is the sole owner of Receivables
and Inventory included therein free from any lien, security interest or
encumbrance; each account included therein is in existence, unconditional and
valid, and arose from a bona fide outright sale of Inventory by Borrower in the
ordinary course of business, for liquidated amounts as set forth in the
Borrowing Base Report, and such Inventory has been delivered or provided to the
respective account debtors; no account included therein arose in connection
with a contract or assignment which purports to make an assignment or security
interest therein void or conditions such assignment or security interest on
consent of the account debtor; no account is subject to any sale, assignment,
claim or security interest of any character and Borrower will not make any sale
or other assignment thereof or create any other security interest therein; no
account is subject to any claim for credit, deduction, allowance, extension or
adjustment, defense, dispute, setoff or counterclaim, except for discounts for
early payment and volume purchases and credits for returns of merchandise; as
allowed by Borrower in the ordinary course of business as previously disclosed
to Agent and with respect to early payment discounts, as reflected on the face
of the invoice evidencing such account; all Inventory reflected in such
Borrowing Base Report is held for sale in the ordinary course of Borrower&#146;s
business, and no such Inventory is located at any location in breach of the
requirements of this Agreement and no negotiable documents have been issued in
respect of any such Inventory; no Inventory reflected in such Borrowing Base
Report is returned Inventory subject to the restrictions of paragraph 7.22
unless otherwise disclosed to Agent in writing.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9 Aging Reports. Contemporaneously with delivery of each Borrowing Base
Report, and in any event within thirty (30)&nbsp;days after the end of each calendar
quarter, Borrower shall furnish to Agent an analysis of amounts owing on all
accounts included within the Receivables, showing an aging as follows: (i)
those aged 60&nbsp;days or less from date of invoice, (ii)&nbsp;those aged over 60&nbsp;days,
but less than 91&nbsp;days, from date of invoice, (ii)&nbsp;those aged over 90&nbsp;days, but
less than 121&nbsp;days, from date of invoice, and (iii)&nbsp;those aged over 120&nbsp;days
from date of invoice. Such analysis shall include a listing of the name and
complete address of each account debtor and such other information as Agent may
request.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.10 Use of Proceeds. All amounts borrowed under the Facility shall be
used by Borrower in accordance with paragraph 2.6.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.11 Notification of Contingent Liabilities. Promptly upon receiving
notice or otherwise becoming aware thereof, Borrower shall notify Agent of any
pending or threatened lawsuit, claim, action, liability, investigation or
proceeding against Parent or Borrower, or any other Person included in Parent&#146;s
or Borrower&#146;s consolidated financial statements, that would be treated as a
contingent liability under GAAP and is in an amount in excess of $100,000.00.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.12 Notification of Material Changes. Borrower will notify Agent in
writing at least thirty (30)&nbsp;days prior to the occurrence of any of the
following: (i)&nbsp;change of Borrower&#146;s name, (ii)&nbsp;change of Borrower&#146;s address or
principal place of business, (iii)&nbsp;change of the location of Borrower&#146;s books
and records, (iv)&nbsp;the opening of any new place of business or the closing of
any existing place of business (excluding any such places of business that
result solely from arrangements made by Borrower with its sales
representatives) in the ordinary course of business, (v)&nbsp;use of any trade name,
fictitious name or other assumed name or (vi)&nbsp;any change in accounting policies
or financial reporting practices by Parent or any Subsidiary other than
standard changes required in accordance with GAAP. Borrower shall promptly
notify Agent of any change in any other material fact or circumstance
represented or warranted in any of the Loan Documents.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.13 Notification Regarding Default. Borrower shall immediately notify
Agent in writing upon becoming aware of the existence of any condition or event
which constitutes an Event of Default or any condition or event which, after
notice or lapse of time, or both, would constitute an Event of Default, therein
specifying the nature and period of existence thereof and what action Borrower
is taking or proposes to take with respect to such condition or event. Borrower
shall immediately notify Agent in writing if it knows, or reasonably expects,
that an Event of Default will occur, therein specifying the nature of the
anticipated Event of Default. Without limiting the foregoing, Borrower will
also immediately notify Agent of any of the following: (i)&nbsp;the board of
directors of EWC GP in its capacity as general partner of Borrower has
authorized the filing by Borrower of a petition in bankruptcy, (ii)&nbsp;Borrower is
aware that any covenant under this Agreement has been breached, or reasonably
expects that any such covenant will be breached, (iii)&nbsp;Borrower is aware that
any account debtor obligated on any Receivables pledge to Agent is in
bankruptcy <I>(provided, </I>that no such notice shall be required with respect to any
such account debtor (a)&nbsp;from whom the aggregate account balance owing to
Borrower is less than ten percent (10%) of the total aggregate amount of
Borrower&#146;s accounts and (b)&nbsp;to whom Borrower&#146;s aggregate sales during the
preceding twelve (12)&nbsp;calendar months was less than ten percent (10%) of the
total aggregate of all of Borrower&#146;s sales during such period), and (iv)
repossession or attempted repossession by any Person of any Inventory.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.14 Payment of Taxes and Other Obligations. Borrower and each Guarantor
shall promptly pay, or cause to be paid, when due, any and all taxes except
such taxes as may be contested in good faith by appropriate proceedings,
provided, that adequate reserves shall be maintained as are appropriate
according to GAAP. At Agent&#146;s request pending resolution of any such contest
and prior to the delinquency of such tax, Borrower and each Guarantor, as the
case may be, shall furnish to Agent a cash reserve in the amount of the tax,
together with a reasonable additional sum to pay all projected costs, interest
and penalties in connection therewith, conditioned that such tax, together with
the applicable interest, cost, and penalties, if any, be timely paid to the
extent required upon resolution of such contest. Borrower agrees that it shall
immediately notify Agent of the initiation of any such contest and advise Agent
from time to


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<P align="left" style="font-size: 10pt">time of the status thereof. Borrower and each Guarantor shall promptly
pay any amounts adjudged to be due pursuant to any such contest, with all
costs, penalties, and interest thereon, before such judgment becomes final or
any writ or order is issued under which Borrower&#146;s or such Guarantor&#146;s
property, or any portion thereof, may become subject to any lien or
encumbrance.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.15 Compliance with Laws. Borrower and each Guarantor shall comply with
all applicable laws, regulations and orders applicable to it or its property, a
violation of which would reasonably be expected to result in a Material Adverse
Effect. At Agent&#146;s request, Borrower will provide Agent with evidence of
Borrower&#146;s or any Guarantor&#146;s compliance with Environmental Requirements.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.16 Compliance with Agreements. Borrower shall comply in all material
respects with all agreements, indentures, mortgages, or documents binding upon
Borrower or affecting its property or business.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.17 Fees, Costs and Expenses. Borrower agrees to promptly pay upon
demand all costs, fees and expenses as provided in paragraph 11.11.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.18 Subordination Agreements. At Agent&#146;s request, all present and future
obligations due by Borrower to Affiliates (excluding ordinary course items such
as travel and expense reimbursements and other similar ordinary course items
determined by agreement) shall be subordinate in right of payment and claim to
the Obligations, pursuant to definitive subordination agreements executed by
Borrower and such Affiliates in form satisfactory to Agent.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.19 Change of Fiscal Year. Borrower shall notify Agent at least ninety
(90)&nbsp;days prior to the effective date of any change in its fiscal year.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.20 Employee Benefit Plans. Borrower shall timely deliver the following
to Agent: (a)&nbsp;a copy of any notice of noncompliance received from the PBGC
under Section&nbsp;4041(b)(2)(c), within three (3)&nbsp;days after receipt of such
notice; (b)&nbsp;a copy of any notice received by Borrower or any ERISA Affiliate,
or the administrator of any Plan, that the PBGC has instituted proceedings to
terminate such Plan or to appoint a trustee to administer such Plan, promptly
upon receipt and in no event more than three (3)&nbsp;days after the receipt of such
notice; (c)&nbsp;a copy of any notice received by Borrower or any ERISA Affiliate
concerning the imposition of any withdrawal liability under Section&nbsp;4202 of
ERISA, within ten (10)&nbsp;days after receipt thereof by Borrower or such ERISA
Affiliate; (d)&nbsp;a copy of any notification of intention to impose or assert
withdrawal liability under ERISA against Borrower or any ERISA Affiliate,
promptly upon receipt thereof and in any event within three (days)&nbsp;of receipt
thereof; and (e)&nbsp;a copy of any notice from the Internal Revenue Service
regarding revocation or investigation of possible revocation of the qualified
status of any Plan under the IRC, promptly upon receipt thereof and in any
event within three (3)&nbsp;days after receipt thereof. If requested by Agent,
Borrower shall timely deliver the following to Agent: (f)&nbsp;a copy of all
materials required to be filed with the PBGC with respect to any Reportable
Event, within ten (10)&nbsp;days after the earlier of the filing or the occurrence
thereof; (g)&nbsp;a copy of any notice sent by Borrower to participants of a Plan of
Borrower&#146;s intent to terminate such Plan, no later than the date such notice is
required to be provided to participants under Section&nbsp;4041(a)(2) of ERISA; (h)
a copy of each annual and other


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<P align="left" style="font-size: 10pt">report with respect to each Plan or any trustee created thereunder,
promptly after the filing thereof with the United States Secretary of Labor or
the PBGC; and (i)&nbsp;such additional information concerning any of Borrower&#146;s
Employee Benefit Plans as may be requested by Agent. Borrower shall make prompt
payment of all contributions required under all Plans to the extent required to
meet the minimum funding standard set forth in ERISA with respect to such
Plans, but shall reduce contributions or benefits if and to the extent
necessary to avoid an Event of Default hereunder to the extent such reduction
is not prohibited by applicable provisions of ERISA.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.21 Financial Covenants.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(a) Borrower agrees that the following financial covenants
must be maintained as set forth herein. Borrower&#146;s compliance
shall be measured as of the end of each Fiscal Quarter, unless the
context provides otherwise.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Fixed Charge Ratio. Fixed Charge
Ratio shall not at any time be less than 3.50 to 1.00.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Leverage Ratio. Leverage Ratio shall
not at any time be more than 3.50 to 1.0.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Leverage Ratio. Leverage Ratio for
more than two consecutive Fiscal Quarters shall not
exceed 3.00 to 1.00.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Capital Expenditures. Capital
Expenditures shall not exceed $25,000,000 during any
fiscal year.</TD>
</TR>

</TABLE>



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(b) For purposes of measuring the financial covenants under
this paragraph, the following definitions shall apply, each
determined on a consolidated basis for Parent and the Subsidiaries
according to GAAP.


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Capital Expenditures&#148; means all
expenditures which are classified as capital
expenditures according to GAAP.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Cash Taxes&#148; means, for any period,
all federal, state, local and foreign income taxes paid
in cash during such period.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Current Maturities of Long-Term
Indebtedness&#148; means, for any period, the scheduled
principal payments during such period in respect of
indebtedness having a final maturity date of more than
one year (excluding indebtedness under the Facility).</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;EBITDA&#148; means an amount equal to the
sum of the following, determined for the preceding four
(4)&nbsp;completed Fiscal Quarters: (i)&nbsp;income before
provision for income taxes plus (ii)&nbsp;all interest
charges paid or accrued plus (iii)&nbsp;depreciation and
amortization.</TD>
</TR>

</TABLE>

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<P><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Fixed Charge Ratio&#148; means the ratio
of the following, determined for the preceding four (4)
Fiscal Quarters: (a)&nbsp;the sum of EBITDA less Cash Taxes
less Maintenance Capital Expenditures, (b)&nbsp;divided by
the sum of Interest Expense plus Current Maturities of
Long-Term Indebtedness plus cash dividends paid by the
Parent to its shareholders.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Funded Debt&#148; at any time means an
amount equal to the aggregate principal amount
outstanding at such time of indebtedness described in
clauses (a), (c)&nbsp;and (e)&nbsp;of paragraph 7.26.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Interest Expense&#148; means all interest
charges paid or assumed, excluding capitalized interest,
if any.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Leverage Ratio&#148; means the ratio of
the following: (a)&nbsp;Funded Debt as of the end of a
Fiscal Quarter, (b)&nbsp;divided by EBITDA for the preceding
four (4)&nbsp;Fiscal Quarters ending with such Fiscal
Quarter.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Maintenance Capital Expenditures&#148;
means, for any period of four (4)&nbsp;Fiscal Quarters, an
amount equal to $6,000,000.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.22 No Liens; Inventory. Borrower and each Guarantor covenants and
agrees that (i)&nbsp;it will not grant, or suffer to exist, any security interest,
lien or other encumbrance on any of its assets other than liens with respect to
indebtedness permitted by paragraph 7.26(c) and Permitted Encumbrances and (ii)
all such assets shall at all times be and remain free and clear of security
interests, liens or other encumbrances other than Permitted Encumbrances.
Borrower represents and warrants to Agent that all Inventory shall be held for
sale in the ordinary course of Borrower&#146;s business, and is and will be fit for
such purpose. Borrower will keep the Inventory in good and marketable
condition, at its own expense. All sales of Inventory shall be in accordance
with applicable law. Borrower will maintain a perpetual inventory system for
finished goods at all times. Borrower will conduct a physical count of the
Inventory at least once per calendar year and at Agent&#146;s request shall promptly
supply Agent with a copy of such count. No negotiable documents have been
issued in respect of any Inventory, and none shall be issued without prior
written notice to Agent. No Inventory is held by Borrower on consignment or
approval, or on a sale or return, bill-and-hold, guaranteed sale, repurchase or
similar basis and, no Inventory has been sold or delivered to any Person on
consignment or approval, or on a sale or return, bill-and-hold, guaranteed
sale, repurchase or similar basis. Borrower will not acquire or accept any
Inventory on consignment or approval, or on a sale or return, bill-and-hold,
guaranteed sale, repurchase or similar basis without the prior written consent
of Agent and Borrower will not sell any Inventory on consignment or approval,
or on a sale or return, bill-and-hold, guaranteed sale, repurchase or similar
basis without the prior written consent of Agent, provided that, this shall not
preclude Borrower from holding at Borrower&#146;s facilities raw materials and other
goods owned by suppliers and other third parties (separately identified and
segregated from the Inventory), in exchange for such consideration as Borrower
deems to be adequate. Unless Agent agrees otherwise, all returned Inventory
shall be segregated from all other Inventory, and shall


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<P align="left" style="font-size: 10pt">not be reported as Eligible Inventory, unless and until Borrower
demonstrates to Agent&#146;s satisfaction that such returned Inventory is in
saleable condition and meets all criteria for Eligible Inventory. Unless
otherwise agreed by Agent, the amount of Borrower&#146;s accounts relating to all
returned Inventory shall be deemed excluded from Eligible Accounts. Except for
sales in the ordinary course of business, Borrower will not deliver possession
or control of any Inventory held at Borrower&#146;s chief executive office to any
Person without Agent&#146;s prior written consent. At Agent&#146;s request, Borrower
will cause the landlord to execute and deliver to Agent a landlord&#146;s waiver
with respect to any leased locations where any Inventory will be located,
thereby waiving any right to claim a landlord&#146;s lien therein. Borrower shall
immediately notify Agent upon receipt of any notice from any Person claiming
past due rent, fees or other charges in respect of any Inventory.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.23 Insurance. Borrower shall keep and maintain adequate insurance with
respect to its business and property, written by insurers acceptable to Agent
(or, as to workers&#146; compensation or similar insurance, self-insurance
authorized by the jurisdiction in which it operates). Such insurance shall be
with respect to loss, damages, and liability of amounts not less than
reasonably requested by Agent, and shall include, at minimum, extended coverage
insurance, insurance against business interruption, insurance for workers
compensation, and insurance for general premises liability, fire, theft,
burglary, pilferage, loss in transit, casualty and all risk. Borrower will
make timely payment of all premiums required to maintain such insurance in
force. Borrower shall deliver copies of each insurance policy to Agent upon
request. If Borrower fails to procure such insurance or to pay the premiums
therefor when due, Agent shall have the right (but with no obligation) to make
such payment, which amount Borrower shall pay to Agent on demand or, at Agent&#146;s
option (but with no obligation to do so) Agent may add such amount to the
unpaid principal due by Borrower under the Facility, in which event such amount
will be deemed paid and the aggregate amount thereof shall be treated as a loan
under the Facility.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.24 Sale of Assets. Borrower will not sell or dispose of any assets
other than the sale of Inventory, or disposal or replacement of equipment, in
the ordinary course of business.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.25 Dissolution; Liquidation; Merger. Neither Borrower nor Parent shall
dissolve or liquidate, or become a party to any merger or consolidation with
any Person.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.26 Limitation on Indebtedness. Neither Borrower nor any Guarantor will
be obligated, directly or indirectly, for borrowed money or otherwise under any
promissory note, bond, indenture or similar instrument, other than (a)&nbsp;in favor
of Agent and the Lenders hereunder, (b)&nbsp;trade indebtedness incurred in the
normal and ordinary course of Borrower&#146;s or such Guarantor&#146;s business and not
more than ninety (90)&nbsp;days past due, (c)(i) indebtedness of Borrower or any
Guarantor under capitalized leases and (ii)&nbsp;purchase money indebtedness in
connection with the purchase of equipment, if the payments required in respect
of such capitalized leases and purchase money indebtedness do not exceed
$2,100,000.00 in the aggregate during any 12-month period, (d)&nbsp;loans from
Borrower to any of the Parent, EWC LP or EWC GP, the proceeds of which shall be
used solely for reasonable operating expenses of Parent, EWC LP or EWC GP
incurred in the ordinary course of business, <I>provided, however</I>, that the
aggregate principal amount of such loans from Borrower to Parent, EWC LP or EWC
GP shall at no time during any fiscal year exceed an amount equal to the
difference between


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<P align="left" style="font-size: 10pt">$2,000,000 and the dividends permitted and actually paid during such
fiscal year under paragraph 7.30(a), (e)&nbsp;the Private Placement Debt, so long as
(i)&nbsp;there is no Default or Event of Default immediately before and, on a pro
forma basis, after incurrence of such indebtedness and (ii)&nbsp;the aggregate
amount of such indebtedness, including the amount to be issued, does not exceed
75% of net consolidated fixed assets of Parent at time of the incurrence of
such indebtedness, and (f)&nbsp;obligations (contingent or otherwise) of the
Borrower or any Subsidiary existing or arising under any Swap Contract with any
Lender or any Affiliate of any Lender, provided that (i)&nbsp;such obligations are
(or were) entered into by such Person in the ordinary course of business for
the purpose of directly mitigating risks associated with liabilities,
commitments, investments, assets, or property held or reasonably anticipated by
such Person, or changes in the value of securities issued by such Person, and
not for purposes of speculation or taking a &#147;market view;&#148; and (ii)&nbsp;such Swap
Contract does not contain any provision exonerating the non-defaulting party
from its obligation to make payments on outstanding transactions to the
defaulting party;



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.27 Limitation on Contingent Liabilities. Neither Borrower nor any
Guarantor will be directly or indirectly liable in connection with the
obligations of any Person, whether by guarantee, surety, endorsement (other
than endorsement of negotiable instruments for collection in the ordinary
course of business), agreement to purchase or repurchase, agreement to make
investments, agreement to provide funds or maintain working capital, or any
agreement to assure a credit against loss, other than (a)&nbsp;those in favor of
Agent and the Lenders hereunder, and (b)&nbsp;indemnities by Borrower or any
Guarantor of liabilities of directors and officers pursuant to provisions
contained in Borrower&#146;s partnership agreement or any Guarantor&#146;s governance
documents or otherwise permitted by applicable law and other contractual
indemnities (such as contractual indemnifications in favor of customers)
typically entered into in the normal course of business or in the course of the
issuance and sale of securities.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.28 Change in Business. Borrower shall not discontinue, or make any
material change in, its business as currently established, or enter any new or
different line of business not directly related to Borrower&#146;s existing line of
business.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.29 Change in Management. There will be no change of the personnel
performing the functions of Chairman of the Board and President and Chief
Executive Officer of EWC GP as such positions are presently constituted.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.30 Dividends, Distributions, Redemptions. Borrower will not (i)
declare, pay or issue any dividends or other distributions in respect of its
partnership interests, (ii)&nbsp;distribute, reserve, secure or otherwise commit
distributions in respect of its partnership interests or (iii)&nbsp;make any payment
(whether in cash, securities or other property), including any sinking fund or
similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancellation or termination in respect of its partnership
interests; <I>provided, however</I>, that if no Default or Event of Default exists or
will result therefrom Borrower may make distributions to its shareholders (a)
in the aggregate amount equal to or less than $2,000,000 per fiscal year, the
proceeds of which shall be used solely for reasonable operating expenses of
Parent, EWC LP and EWC GP incurred in the ordinary course of business or to
repay intercompany loans permitted under paragraph 7.26(d), and (b)&nbsp;in addition
to the distributions permitted under clause (a)&nbsp;of this paragraph, in an
aggregate amount during any period of four (4)&nbsp;Fiscal Quarters not to exceed



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<P align="left" style="font-size: 10pt">25% of net income of Borrower during such period, it being agreed that such distributions
shall be made to either EWC GP or EWC LP who shall then distribute such
distributions to Parent, <I>provided, further</I>, that the proceeds of the
distributions permitted under clause (b)&nbsp;above shall be used solely for
dividends to the shareholders of the Parent and/or for repurchasing shares of
Parent to be held as treasury shares.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.31 Burdensome Agreements. Borrower shall not, and shall not permit any
Subsidiary to enter into any Contractual Obligation (other than this Agreement
or any other Loan Document) that (a)&nbsp;limits the ability (i)&nbsp;of any Subsidiary
to make dividends or other distributions to Borrower or any Guarantor or
otherwise transfer property to Borrower or any Guarantor or (ii)&nbsp;of Borrower or
any Subsidiary to create, incur, assume or suffer to exist Liens on property of
such Persons, provided, however, that this clause (ii)&nbsp;shall not prohibit any
negative pledge incurred or provided (A)&nbsp;in favor of any holder of indebtedness
permitted under paragraph 7.26(c) solely to the extent any negative pledge
relates to property financed by or the subject of such indebtedness or, (B)&nbsp;as
provided in the documents governing the Private Placement Debt, (C)&nbsp;relating to
property existing at the time of the acquisition thereof, so long as the
restriction or condition relates only to the property so acquired, (D)&nbsp;in
connection with a renewal, extension, refinancing, refund or replacement (or
successive extensions, renewals, refinancings, refunds or replacements) of
indebtedness issued under an agreement referred to in clauses (A)&nbsp;through (C)
above, so long as the restrictions and conditions contained in any such
renewal, extension, refinancing, refund or replacement agreement, taken as a
whole, are not materially more restrictive that the restrictions and conditions
contained in the original agreement, (E)&nbsp;constituting customary provisions
restricting subletting or assignment of any leases of Borrower or any
Subsidiary or provisions in agreements that restrict the assignment of such
agreement or any rights thereunder, (F)&nbsp;constituting restrictions on the sale
or other disposition of any property securing indebtedness as a result of a
Lien on such property permitted hereunder, (G)&nbsp;constituting customary
restrictions on cash, other deposits or assets imposed by customers and other
persons under contract entered into in the ordinary course of business, (H)
constituting any restriction or condition with respect to property under an
agreement that has been entered into for the disposition of such property,
provided that such disposition is otherwise permitted hereunder, or (I)
constituting any restriction or condition with respect to property under a
charter, lease or other agreement that has been entered into for the employment
of such property; or (b)&nbsp;requires the grant of a Lien to secure an obligation
of such Person if a Lien is granted to secure another obligation of such
Person, except as provided herein or in the documents governing the Private
Placement Debt.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.32 Bonuses, Consulting Fees to Shareholders and Directors. Borrower
will not declare or pay any bonus compensation, or pay any consulting fees, to
any Affiliates in the aggregate for any calendar year in excess of ten percent
(10%) of the prior year&#146;s after-tax income.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.33 Loans to Employees. Except for usual and customary extensions of
credit to customers of Borrower made in the ordinary course of its business,
Borrower will not make any loans or advances to or for the benefit of any
employee or any officer, director or shareholder of Borrower or its corporate
general partner or any other Guarantor other than (i)&nbsp;usual expense allowances
for employees in the ordinary course of business, and (ii)&nbsp;loans to employees
(who


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<P align="left" style="font-size: 10pt">are not executive officers or the equivalent or directors) in excess of an
aggregate amount of $200,000 at any one time outstanding.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.34 Transactions with Affiliates. Borrower will not make any payment on
any obligation owing to any Affiliate (excluding reasonable expense
reimbursements in the ordinary course of business) unless specifically allowed
under any Affiliate Subordination Agreement or otherwise allowed by Agent.
Borrower will not enter into any transaction with an Affiliate except in the
ordinary course of business on terms no less favorable to Borrower, nor more
favorable to such Affiliate, than would be obtainable in a comparable arm&#146;s
length transaction with a Person who is not an Affiliate. Borrower will not
enter into any transaction with an Affiliate unless such transaction is
specifically approved by the board of directors of EWC GP in its capacity as
general partner of Borrower as being an arm&#146;s length transaction on terms no
less favorable to Borrower, nor more favorable to such Affiliate, than would be
obtainable in a comparable arm&#146;s length transaction with a Person who is not an
Affiliate.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.35 Acquisitions. Borrower shall not purchase or otherwise acquire
assets from any Person outside the ordinary course of business of Borrower,
except for Capital Expenditures permitted pursuant to paragraph 7.21(a).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.36 Limitation on Investments. Borrower shall not invest in or otherwise
purchase or acquire the securities of any Person, except for ordinary course
investments in securities of the United States and certificates of deposit
issued by commercial banks organized in the United States which have assets in
excess of $1,000,000,000.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.37 Prepayments. Neither Borrower nor any Guarantor shall prepay any
Indebtedness if at the time of such proposed prepayment or after giving effect
thereto any Default or Event of Default shall exist and be continuing.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.38 Amendments to Private Placement Debt. Borrower shall not change or
permit any Subsidiary to change or amend or accept any waiver or consent with
respect to, any document, instrument or agreement relating to the Private
Placement Debt or the Note Purchase Agreement that would result in (a)&nbsp;an
increase in the principal (above $75,000,000), interest, overdue interest, fees
or other amounts payable in respect of the Private Placement Debt, <I>provided
however</I>, that notwithstanding the foregoing, the restriction on the increase of
interest set forth in clause (a)&nbsp;shall not prohibit the issuance of the Private
Placement Debt after the date hereof with a market rate of interest for private
placements of companies of similar size and similar credit quality, (b)&nbsp;an
acceleration in any date fixed for payment or prepayment of principal,
interest, fees or other amounts payable in respect of the Private Placement
Debt (including, without limitation, as a result of any redemption) or (c)&nbsp;a
change in any covenant, term or provision in the Private Placement Debt or the
Note Purchase Agreement which would result in such term or provision being more
restrictive than the terms of this Agreement and the other Loan Documents.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.39 Further Assurances. Parent and Borrower will, and Borrower will
cause each Subsidiary to, execute and deliver such further documentation and
take such further action as may be reasonably requested by the Agent to carry
out the provisions and purposes of the Loan Documents.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.40 Covenants Cumulative. The covenants contained in this Article&nbsp;VII
are in addition to all other covenants provided in the Loan Documents.


<P align="center" style="font-size: 10pt">ARTICLE VIII. EVENT OF DEFAULT



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 Event of Default. Each of the following shall constitute an Event of
Default under this Agreement:



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(a) The failure to pay the outstanding principal, accrued
interest, fees or other sums constituting a part of the
Obligations, or any part thereof, when due in accordance with the
terms of the Loan Documents;



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(b) Any violation, breach or default of any covenant,
agreement or other obligation under this Agreement (not otherwise
covered by paragraph 8.1(a)) or any of the Loan Documents and, in
the case of any such violation, breach or default under paragraphs
7.1, 7.2, 7.6, 7.7, 7.8, 7.9, 7.10, 7.11, 7.14, 7.17, 7.20 or 7.21,
the same is not cured within ten (10)&nbsp;days after the occurrence
thereof, and in the case of any such violation, breach or default
under paragraphs 7.3.1, 7.4, 7.5, 7.12, 7.15, 7.16, 7.18 or 7.19,
the same is not remedied within thirty (30)&nbsp;days after the
occurrence thereof.



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(c) Any representation or warranty made by Borrower or any
Guarantor in the Loan Documents was false in any material respect
at the time when made;



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(d) The filing of any petition or proceeding by or against
Borrower or any Guarantor under the United States Bankruptcy Code,
as amended from time to time, or any other applicable state or
federal law relating to bankruptcy reorganization or other relief
for debtors, or the appointment of a conservator, receiver,
trustee, or liquidator of all or a substantial part of the assets
of Borrower or any Guarantor; provided that if any such petition,
proceeding or appointment is filed or made without the consent of
Borrower or any Guarantor, an Event of Default shall not occur
unless such petition, proceeding or appointment shall continue
undismissed or unstayed for a period of sixty (60)&nbsp;consecutive
calendar days;



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(e) The use of any finds borrowed from any Lender under this
Agreement for any purpose other than as provided in this Agreement;



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(f) Any violation, breach or default of any covenant,
agreement or other obligation of any Guarantor under any Guaranty
or other Loan Document to which it is a party which is not cured
within ten (10)&nbsp;days after the occurrence thereof;



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(g) Borrower fails to have discharged within a period of
thirty (30)&nbsp;days of filing of commencement of any attachment,
sequestration, garnishment, execution or other action against or
with respect to any of Borrower&#146;s or any


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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="margin-left:6%; font-size: 10pt">Guarantor&#146;s property if the outcome, pendency or effect
thereof is reasonably expected to result in or cause a Material
Adverse Effect;



<P align="left" style="margin-left:6%; font-size: 10pt">(h) (i)&nbsp;Any breach or default in the payment or performance of
any material obligation, or any defined event of default, under the
terms, provisions or conditions of any contract or instrument
pursuant to which Borrower or any Guarantor has incurred any
indebtedness or obligation or other liability to any Person, the
effect of which is to have caused, or to create an enforceable
right to cause, indebtedness in a principal amount in excess of
$1,750,000.00 to be declared to be due and payable prior to stated
maturity; (ii)&nbsp;any other event occurs with respect to indebtedness
of Borrower or any Guarantor in a principal amount in excess of
$1,750,000.00, the effect of which is to cause, or create an
enforceable right to cause, such indebtedness to be demanded or to
become due or to be repurchased, prepaid, defeased or redeemed or
an offer to repurchase, prepay, defease or redeem to be made, prior
to its stated maturity; or (iii)&nbsp;there occurs under any Swap
Contract an Early Termination Date (as defined in such Swap
Contract) resulting from (A)&nbsp;any event of default under such Swap
Contract as to which the Borrower or any Subsidiary is the
Defaulting Party (as defined in such Swap Contract) or (B)&nbsp;any
Termination Event (as so defined) under such Swap Contract as to
which the Borrower or any Subsidiary is an Affected Party (as so
defined) and, in either event, the Swap Termination Value owed by
the Borrower or such Subsidiary as a result thereof is greater than
$1,750,000.00



<P align="left" style="margin-left:6%; font-size: 10pt">(i)&nbsp;Borrower fails to have discharged within a period of
thirty (30)&nbsp;days after the signing or entry of any judgment against
Borrower or any Guarantor in an amount equal to or exceeding
$1,750,000.00;



<P align="left" style="margin-left:6%; font-size: 10pt">(j)&nbsp;The dissolution or liquidation of Borrower or any
Guarantor, or the taking of any action by the board of directors,
shareholders or any partner of Borrower or any Guarantor to
dissolve or liquidate;



<P align="left" style="margin-left:6%; font-size: 10pt">(k)&nbsp;A Reportable Event or Prohibited Transaction with respect
to a Plan which could, in the opinion of Agent, result in a
Material Adverse Effect;



<P align="left" style="margin-left:6%; font-size: 10pt">(l)&nbsp;The filing of a notice of intent to terminate a Plan under
a distress termination as described in section 4041(c) of ERISA
which could, in the opinion of Agent, result in a Material Adverse
Effect;



<P align="left" style="margin-left:6%; font-size: 10pt">(m)&nbsp;The receipt of a notice by the plan administrator of
Borrower that the PBGC has instituted proceedings to terminate a
Plan or appoint a trustee to administer a Plan;



<P align="left" style="margin-left:6%; font-size: 10pt">(n)&nbsp;The withdrawal by Borrower or any ERISA Affiliate from a
multiemployer plan as defined in Section&nbsp;3(37) or Section
4001(a)(3) of ERISA or Section&nbsp;414 of the IRC if such action could,
in the opinion of Agent, result in a Material Adverse Effect;


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<P align="left" style="margin-left:6%; font-size: 10pt">(o)&nbsp;The revocation by the Internal Revenue Service of the
qualified status of any Employee Benefit Plan if such action could,
in the opinion of Agent, result in a Material Adverse Effect;



<P align="left" style="margin-left:6%; font-size: 10pt">(p)&nbsp;Any qualification by a certified public accountant
relative to any annual audited financial statement delivered to
Agent under paragraph 7.5 of this Agreement that is not acceptable
to Agent, in its discretion; or



<P align="left" style="margin-left:6%; font-size: 10pt">(q)&nbsp;Any Loan Document, at any time after its execution and
delivery and for any reason other than as expressly permitted
hereunder or satisfaction in full of all the Obligations, ceases to
be in full force and effect; or any Loan Party or any other Person
contests in any manner the validity or enforceability of any Loan
Document; or any Loan Party denies that it has any or further
liability or obligation under any Loan Document, or purports to
revoke, terminate or rescind any Loan Document; or



<P align="left" style="margin-left:6%; font-size: 10pt">(r)&nbsp;A Change of Control occurs.


<P align="center" style="font-size: 10pt">ARTICLE IX. REMEDIES



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 Refusal of Funding. No Lender shall have any obligation to make any
Loan (i)&nbsp;at any time when any applicable condition for funding prescribed under
this Agreement has not been fulfilled to Agent&#146;s satisfaction, (ii)&nbsp;at any time
when any Event of Default is in existence, or when any Default exists, (iii)&nbsp;if
Agent or any Lender has received any notice under paragraph 7.13 or has
knowledge of any event or condition which would be the subject of any notice
required thereunder, or (iv)&nbsp;if Borrower has repudiated or made any
anticipatory breach of any of its obligations under this Agreement; and any
Loan requested by Borrower at any such time may be declined by all or any of
the Lenders, in whole or in part, in such Lender&#146;s sole discretion without
prior notice.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 Remedies. Should an Event of Default occur at any time, Agent may at
its option, and shall if directed by all the Required Lenders, (a)&nbsp;terminate
the Commitments upon written notice to Borrower; (b)&nbsp;declare the entire
outstanding principal amount and unpaid accrued interest of any part of the
Obligations to be immediately due and payable; and (c)&nbsp;require that Borrower
Cash Collateralize the L/C Obligations (in an amount equal to the then
Outstanding Amount thereof); and, in addition, may exercise and avail itself of
any and all other remedies as may be available under the Loan Documents or as
otherwise may be available according to law; provided, however, upon the
occurrence of an Event of Default under paragraph 8.1(d), the Commitments shall
automatically terminate, the obligation of Borrower to Cash Collateralize the
L/C Obligations as aforesaid shall automatically become effective, and the
entire outstanding principal amount and unpaid accrued interest of any part of
the Obligations shall automatically become due and payable, without further
action by Agent or any Lender.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 Enforcement Costs; Application of Proceeds. Borrower shall pay to
Agent and to the Lenders on demand any and all expenses, including legal
expenses, reasonable attorneys&#146; fees, court costs, collection costs, and
traveling expenses, incurred or paid by Agent or such Lenders in protecting or
enforcing any of its or their rights hereunder. Until reimbursed or


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<P align="left" style="font-size: 10pt">otherwise paid, Agent and the Lenders are hereby authorized to add all
such expenses to the principal amount of the Obligations.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 Waiver of Notices. Except as otherwise expressly provided in this
Agreement, Borrower expressly waives presentment, demand, notice of intention
to accelerate, notice of acceleration, protest and any other notices of any
kind with respect to the Obligations.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 Setoff. Borrower irrevocably authorizes Agent and each Lender to
charge any account of Borrower maintained with Agent or any Lender with such
amount as may be necessary from time to time to pay any Obligations. Borrower
agrees that Agent and each Lender shall have a contractual right to setoff any
and all deposits or other sums at any time credited by or due from Agent or any
such Lender to Borrower against any part of the Obligations. Such right of
setoff may be exercised at any time by Agent and/or any Lender without prior
notice, irrespective of whether an Event of Default exists or whether Agent or
any such Lender has accelerated the Obligations; provided, following any such
setoff, Agent or such Lender shall promptly notify Borrower thereof, but
failure to give such notice shall not invalidate the setoff or otherwise impair
or affect any rights with respect thereto. Upon the occurrence of an Event of
Default and for so long as the same shall remain in existence and not cured or
waived, each of Agent and any Lender shall be entitled in its discretion to
hold any such deposits or other sums pending acceleration of the Obligations.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 Performance by Agent and/or Lenders. Should Borrower fail to perform
any covenant, duty, or agreement required by the Loan Documents, Agent and/or
any Lender may, at its sole option and election, perform or attempt to perform
same on behalf of Borrower at Borrower&#146;s cost and expense, provided that
neither Agent not any such Lender shall have an obligation or duty to take any
such action. Borrower agrees to reimburse Agent and/or the Lenders for such
costs and expenses on demand.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7 Non-waiver. Forbearance or indulgence by Agent and Lenders of any
Event of Default or any other event or condition which is or would be the
subject of a required notice under paragraph 7.13, at any time from time to
time, shall not be deemed a waiver of any rights of Agent and Lenders under the
Loan Documents. The acceptance by Agent and/or Lender at any time and from
time to time of any partial payment of the Obligations shall not be deemed to
be a waiver of any Event of Default then existing. No delay or omission by
Agent and/or Lenders in exercising any right or remedy shall impair such right
or remedy, or be construed as a waiver thereof, nor shall any single or partial
exercise of any such rights or remedies preclude other or further exercise
thereof. Neither Agent nor any Lender shall not be required or obligated to
file suit or otherwise pursue any other Person for enforcement or collection of
any of the Obligations.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8 Application of Payments. During the continuance of an Event of
Default, upon (a)&nbsp;the written direction of the Required Lenders or (b)&nbsp;after
the exercise of remedies provided for in Section&nbsp;9.2 (or after the Loans have
automatically become immediately due and payable and the L/C Obligations have
automatically been required to be Cash Collateralized as set forth in the
proviso to Section&nbsp;9.2), any amounts received on account of the Obligations
shall be applied by the Agent in the following order:


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<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;First, to payment of that portion of the Obligations constituting
fees, indemnities, expenses and other amounts (including fees, charges
and disbursements of counsel to the Agent and amounts payable under
Article&nbsp;III) payable to the Agent in its capacity as such;



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;Second, to payment of that portion of the Obligations constituting
fees, indemnities and other amounts (other than principal and interest)
payable to the Lenders and the Issuing Banks (including fees, charges and
disbursements of counsel to the respective Lenders and the Issuing Banks
(including fees and time charges for attorneys who may be employees of
any Lender or the Issuing Banks) and amounts payable under Article&nbsp;III),
ratably among them in proportion to the amounts described in this clause
Second payable to them;



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;Third, to payment of that portion of the Obligations constituting
accrued and unpaid interest on the Loans, L/C Borrowings and other
Obligations, ratably among the Lenders and the Issuing Banks in
proportion to the respective amounts described in this clause Third
payable to them;



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;Fourth, to payment of that portion of the Obligations constituting
unpaid principal of the Loans and L/C Borrowings, ratably among the
Lenders and the Issuing Banks in proportion to the respective amounts
described in this clause Fourth held by them;



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;Fifth, to the Agent for the account of the Issuing Banks, to Cash
Collateralize that portion of L/C Obligations comprised of the aggregate
undrawn amount of Letters of Credit;



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;Sixth, to payment of Swap Obligations, ratably among the Guarantied
Parties (as defined in the Guaranty Agreement) in proportion to the
respective amounts described in this clause Sixth held by them; and



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;Last, the balance, if any, after all of the Obligations have been
indefeasibly paid in full, to the Borrower or as otherwise required by
Law.


<P align="left" style="font-size: 10pt">Subject to Section&nbsp;2.10(c), amounts used to Cash Collateralize the aggregate
undrawn amount of Letters of Credit pursuant to clause Fifth above shall be
applied to satisfy drawings under such Letters of Credit as they occur. If any
amount remains on deposit as Cash Collateral after all Letters of Credit have
either been fully drawn or expired, such remaining amount shall be applied to
the other Obligations, if any, in the order set forth above.



<P align="center" style="font-size: 10pt">ARTICLE X. AGENT



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 Appointment and Authorization of Administrative Agent.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Each Lender hereby irrevocably appoints, designates and authorizes
Agent to take such action on its behalf under the provisions of this Agreement
and each other Loan Document and to exercise such powers and perform such
duties as are expressly delegated to it by the terms of this Agreement or any
other Loan Document, together with such powers as are reasonably incidental
thereto. Notwithstanding any provision to the contrary contained elsewhere
herein or


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<P align="left" style="font-size: 10pt">in any other Loan Document, Agent shall not have any duties or
responsibilities, except those expressly set forth herein, nor shall Agent have
or be deemed to have any fiduciary relationship with any Lender or participant,
and no implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement or any other Loan Document or
otherwise exist against Agent. Without limiting the generality of the
foregoing sentence, the use of the term &#147;agent&#148; herein and in the other Loan
Documents with reference to Agent is not intended to connote any fiduciary or
other implied (or express) obligations arising under agency doctrine of any
applicable Law. Instead, such term is used merely as a matter of market
custom, and is intended to create or reflect only an administrative
relationship between independent contracting parties.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each Issuing Bank shall act on behalf of the Lenders with respect to
any Letters of Credit issued by it and the Issuer Documents associated
therewith, and each Issuing Bank shall have all of the benefits and immunities
(i)&nbsp;provided to Agent in this Article&nbsp;IX with respect to any acts taken or
omissions suffered by such Issuing Bank in connection with Letters of Credit
issued by it or proposed to be issued by it and the Issuer Documents pertaining
to such Letters of Credit as fully as if the term &#147;Administrative Agent&#148; as
used in this Article&nbsp;IX and in the definition of &#147;Agent-Related Person&#148;
included such Issuing Bank with respect to such acts or omissions, and (ii)&nbsp;as
additionally provided herein with respect to such Issuing Bank.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 Delegation of Duties. Agent may execute any of its duties under this
Agreement or any other Loan Document by or through agents, employees or
attorneys-in-fact and shall be entitled to advice of counsel and other
consultants or experts concerning all matters pertaining to such duties. Agent
shall not be responsible for the negligence or misconduct of any agent or
attorney-in-fact that it selects in the absence of gross negligence or willful
misconduct.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 Liability of Administrative Agent. No Agent-Related Person shall (a)
be liable for any action taken or omitted to be taken by any of them under or
in connection with this Agreement or any other Loan Document or the
transactions contemplated hereby (except for its own gross negligence or
willful misconduct in connection with its duties expressly set forth herein as
determined by a final non-appealable judgment by a court of competent
jurisdiction), or (b)&nbsp;be responsible in any manner to any Lender or Participant
for any recital, statement, representation or warranty made by any Loan Party
or any officer thereof, contained herein or in any other Loan Document, or in
any certificate, report, statement or other document referred to or provided
for in, or received by Agent under or in connection with, this Agreement or any
other Loan Document, or the validity, effectiveness, genuineness,
enforceability or sufficiency of this Agreement or any other Loan Document, or
for any failure of any Loan Party or any other party to any Loan Document to
perform its obligations hereunder or thereunder. No Agent-Related Person shall
be under any obligation to any Lender or Participant to ascertain or to inquire
as to the observance or performance of any of the agreements contained in, or
conditions of, this Agreement or any other Loan Document, or to inspect the
properties, books or records of any Loan Party or any Affiliate thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 Reliance by Administrative Agent.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Agent shall be entitled to rely, and shall be fully protected in
relying, upon any writing, communication, signature, resolution,
representation, notice, consent, certificate,


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<P align="left" style="font-size: 10pt">affidavit, letter, telegram, facsimile, telex or telephone message,
electronic mail message, statement or other document or conversation believed
by it to be genuine and correct and to have been signed, sent or made by the
proper Person or Persons, and upon advice and statements of legal counsel
(including counsel to any Loan Party), independent accountants and other
experts selected by Agent. Agent shall be fully justified in failing or
refusing to take any action under any Loan Document unless it shall first
receive such advice or concurrence of the Required Lenders as it deems
appropriate and, if it so requests, it shall first be indemnified to its
satisfaction by the Lenders against any and all liability and expense which may
be incurred by it by reason of taking or continuing to take any such action.
Agent shall in all cases be fully protected in acting, or in refraining from
acting, under this Agreement or any other Loan Document in accordance with a
request or consent of the Required Lenders (or such greater number of Lenders
as may be expressly required hereby in any instance), and such request and any
action taken or failure to act pursuant thereto shall be binding upon all the
Lenders.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Agent shall not be responsible for or have any duty to ascertain
or inquire into the satisfaction of any condition set forth in paragraph 5.1 or
elsewhere herein, other than to confirm receipt of items expressly required to
be delivered to the Agent.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 Notice of Default. Agent shall not be deemed to have knowledge or
notice of the occurrence of any Default, except with respect to defaults in the
payment of principal, interest and fees required to be paid to Agent for the
account of the Lenders, unless Agent shall have received written notice from a
Lender or Borrower referring to this Agreement, describing such Default and
stating that such notice is a &#147;notice of default.&#148; Agent will notify the
Lenders of its receipt of any such notice. Agent shall take such action with
respect to such Default as may be directed by the Required Lenders in
accordance with Article&nbsp;IX; provided, however, that unless and until Agent has
received any such direction, Agent may (but shall not be obligated to) take
such action, or refrain from taking such action, with respect to such Default
as it shall deem advisable or in the best interest of the Lenders.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6 Credit Decision; Disclosure of Information by Administrative Agent.
Each Lender acknowledges that no Agent-Related Person has made any
representation or warranty to it, and that no act by Agent hereafter taken,
including any consent to and acceptance of any assignment or review of the
affairs of any Loan Party or any Affiliate thereof, shall be deemed to
constitute any representation or warranty by any Agent-Related Person to any
Lender as to any matter, including whether Agent-Related Persons have disclosed
material information in their possession. Each Lender represents to Agent that
it has, independently and without reliance upon any Agent-Related Person and
based on such documents and information as it has deemed appropriate, made its
own appraisal of and investigation into the business, prospects, operations,
property, financial and other condition and creditworthiness of the Loan
Parties and their respective Subsidiaries, and all applicable bank or other
regulatory Laws relating to the transactions contemplated hereby, and made its
own decision to enter into this Agreement and to extend credit to Borrower and
the other Loan Parties hereunder. Each Lender also represents that it will,
independently and without reliance upon any Agent-Related Person and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit analysis, appraisals and decisions in taking or
not taking action under this Agreement and the other Loan Documents, and to
make such investigations as it deems necessary to inform itself as to the
business, prospects, operations, property, financial and other condition and


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<P align="left" style="font-size: 10pt">creditworthiness of Borrower and the other Loan Parties. Except for
notices, reports and other documents expressly required to be furnished to the
Lenders by Agent herein, Agent shall not have any duty or responsibility to
provide any Lender with any credit or other information concerning the
business, prospects, operations, property, financial and other condition or
creditworthiness of any of the Loan Parties or any of their respective
Affiliates which may come into the possession of any Agent-Related Person.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7 Indemnification of Administrative Agent. WHETHER OR NOT THE
TRANSACTIONS CONTEMPLATED HEREBY ARE CONSUMMATED, THE LENDERS SHALL INDEMNIFY
UPON DEMAND EACH AGENT-RELATED PERSON (TO THE EXTENT NOT REIMBURSED BY OR ON
BEHALF OF ANY LOAN PARTY AND WITHOUT LIMITING THE OBLIGATION OF ANY LOAN PARTY
TO DO SO), PRO RATA, AND HOLD HARMLESS EACH AGENT-RELATED PERSON FROM AND
AGAINST ANY AND ALL INDEMNIFIED LIABILITIES INCURRED BY IT; PROVIDED, HOWEVER,
THAT NO LENDER SHALL BE LIABLE FOR THE PAYMENT TO ANY AGENT-RELATED PERSON OF
ANY PORTION OF SUCH INDEMNIFIED LIABILITIES TO THE EXTENT DETERMINED IN A
FINAL, NONAPPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO HAVE
RESULTED FROM SUCH AGENT-RELATED PERSON&#146;S OWN GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT; PROVIDED, HOWEVER, THAT NO ACTION TAKEN IN ACCORDANCE WITH THE
DIRECTIONS OF THE REQUIRED LENDERS SHALL BE DEEMED TO CONSTITUTE GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT FOR PURPOSES OF THIS PARAGRAPH. WITHOUT
LIMITATION OF THE FOREGOING, EACH LENDER SHALL REIMBURSE AGENT UPON DEMAND FOR
ITS RATABLE SHARE OF ANY COSTS OR OUT-OF-POCKET EXPENSES (INCLUDING ATTORNEY
COSTS) INCURRED BY AGENT IN CONNECTION WITH THE PREPARATION, EXECUTION,
DELIVERY, ADMINISTRATION, MODIFICATION, AMENDMENT OR ENFORCEMENT (WHETHER
THROUGH NEGOTIATIONS, LEGAL PROCEEDINGS OR OTHERWISE) OF, OR LEGAL ADVICE IN
RESPECT OF RIGHTS OR RESPONSIBILITIES UNDER, THIS AGREEMENT, ANY OTHER LOAN
DOCUMENT, OR ANY DOCUMENT CONTEMPLATED BY OR REFERRED TO HEREIN, TO THE EXTENT
THAT AGENT IS NOT REIMBURSED FOR SUCH EXPENSES BY OR ON BEHALF OF BORROWER.
THE UNDERTAKING IN THIS PARAGRAPH SHALL SURVIVE TERMINATION OF THE AGGREGATE
COMMITMENTS, THE PAYMENT OF ALL OTHER OBLIGATIONS AND THE RESIGNATION OF AGENT.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8 Agent in its Individual Capacity. Bank of America and its Affiliates
may make loans to, issue letters of credit for the account of, accept deposits
from, acquire equity interests in and generally engage in any kind of banking,
trust, financial advisory, underwriting or other business with each of the Loan
Parties and their respective Affiliates as though Bank of America were not
Agent or an Issuing Bank hereunder and without notice to or consent of the
Lenders. The Lenders acknowledge that, pursuant to such activities, Bank of
America or its Affiliates may receive information regarding any Loan Party or
its Affiliates (including information that may be subject to confidentiality
obligations in favor of such Loan Party or such Affiliate) and acknowledge that
Agent shall be under no obligation to provide such information to them. With
respect to its Loans, Bank of America shall have the same rights and powers
under this Agreement as any other Lender and may exercise such rights and
powers as though it were not


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<P align="left" style="font-size: 10pt">Agent or an Issuing Bank, and the terms &#147;Lender&#148; and &#147;Lenders&#148; include
Bank of America in its individual capacity.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9 Successor Administrative Agent. Agent may resign as Administrative
Agent upon 30&nbsp;days notice to the Lenders; provided that any such resignation by
Bank of America shall also constitute its resignation as an Issuing Bank. If
Agent resigns under this Agreement, the Required Lenders shall appoint from
among the Lenders a successor administrative agent for the Lenders, which
successor administrative agent shall be consented to by Borrower at all times
other than during the existence of an Event of Default (which consent of
Borrower shall not be unreasonably withheld or delayed). If no successor
administrative agent is appointed prior to the effective date of the
resignation of Agent, Agent may appoint, after consulting with the Lenders and
Borrower, a successor administrative agent from among the Lenders. Upon the
acceptance of its appointment as successor administrative agent hereunder, the
Person acting as such successor administrative agent shall succeed to all the
rights, powers and duties of the retiring Administrative Agent and Issuing Bank
and the respective terms &#147;Administrative Agent,&#148; &#147;Agent&#148; and &#147;Issuing Bank&#148;
shall mean such successor administrative agent and Letter of Credit issuer, and
the retiring Administrative Agent&#146;s appointment, powers and duties as
Administrative Agent shall be terminated and the retiring Issuing Bank&#146;s
rights, powers and duties as such shall be terminated, without any other or
further act or deed on the part of such retiring Issuing Bank or any other
Lender, other than the obligation of the successor Issuing Bank to issue
letters of credit in substitution for the Letters of Credit issued by the
retiring Issuing Bank, if any, outstanding at the time of such succession or to
make other arrangements satisfactory to the retiring Issuing Bank to
effectively assume the obligations of the retiring Issuing Bank with respect to
such Letters of Credit. After any retiring Administrative Agent&#146;s resignation
hereunder as Administrative Agent, the provisions of this Article&nbsp;X and
paragraphs 11.11 and 11.5 shall inure to its benefit as to any actions taken or
omitted to be taken by it while it was Administrative Agent under this
Agreement. If no successor administrative agent has accepted appointment as
Administrative Agent by the date which is 30&nbsp;days following a retiring
Administrative Agent&#146;s notice of resignation, the retiring Administrative
Agent&#146;s resignation shall nevertheless thereupon become effective and the
Lenders shall perform all of the duties of Agent hereunder until such time, if
any, as the Required Lenders appoint a successor agent as provided for above.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.10 Agent May File Proofs of Claim. In case of the pendency of any
receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement,
adjustment, composition or other judicial proceeding relative to any Loan
Party, Agent (irrespective of whether the principal of any Loan or L/C
Obligations shall then be due and payable as herein expressed or by declaration
or otherwise and irrespective of whether Agent shall have made any demand on
Borrower) shall be entitled and empowered, by intervention in such proceeding
or otherwise:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;to file and prove a claim for the whole amount of the principal and
interest owing and unpaid in respect of the Loans, L/C Obligations and all
other Obligations that are owing and unpaid and to file such other documents as
may be necessary or advisable in order to have the claims of the Lenders and
Agent (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Lenders and Agent and their respective agents
and counsel and all other amounts due the Lenders and Agent under paragraphs
2.10(a), 2.8 and 11.11) allowed in such judicial proceeding; and


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;to collect and receive any monies or other property payable or
deliverable on any such claims and to distribute the same;


<P align="left" style="font-size: 10pt">and any custodian, receiver, assignee, trustee, liquidator, sequestrator
or other similar official in any such judicial proceeding is hereby authorized
by each Lender to make such payments to Agent and, in the event that Agent
shall consent to the making of such payments directly to the Lenders, to pay to
Agent any amount due for the reasonable compensation, expenses, disbursements
and advances of Agent and its agents and counsel, and any other amounts due
Agent under paragraphs 2.8 and 11.1. Nothing contained herein shall be deemed
to authorize Agent to authorize or consent to or accept or adopt on behalf of
any Lender any plan of reorganization, arrangement, adjustment or composition
affecting the Obligations or the rights of any Lender or to authorize Agent to
vote in respect of the claim of any Lender in any such proceeding.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.11 Syndication Agent. The Lender identified herein as &#147;Syndication
Agent&#148; shall have any right, power, obligation, liability, responsibility or
duty under this Agreement other than, in the case of such Lender, those
applicable to all Lenders as such. Without limiting the foregoing, the
Syndication Agent shall not have or be deemed to have any fiduciary
relationship with any Lender.


<P align="center" style="font-size: 10pt">ARTICLE XI. MISCELLANEOUS



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 Effective Date; Termination. This Agreement shall become effective
upon acceptance by Agent and each Lender, as of the effective date specified in
the preamble of this Agreement and shall continue in effect until expiration of
the Contract Term. The Facility and all Commitments hereunder may be
terminated by Agent or by the Required Lenders upon written notice to Borrower
at any time when an Event of Default is in existence. Notwithstanding any
termination or notice of termination, the Obligations and all rights and
remedies of Agent and the Lenders hereunder with respect thereto shall remain
in full force and effect until the Obligations have been paid in full.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 Notices Other Communications; Facsimile Copies.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;General. Unless otherwise expressly provided herein, all notices and
other communications provided for hereunder shall be in writing (including by
facsimile transmission). All such written notices shall be mailed, certified
or registered mail, faxed or delivered to the applicable address, facsimile
number or (subject to subsection (c)&nbsp;below) electronic mail address, and all
notices and other communications expressly permitted hereunder to be given by
telephone shall be made to the applicable telephone number, as follows:



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(i) if to Borrower, Agent or any Issuing Bank, to the address,
facsimile number, electronic mail address or telephone number
specified for such Person on Schedule&nbsp;11.2 or to such other
address, facsimile number, electronic mail address or telephone
number as shall be designated by such party in a notice to the
other parties;



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;(ii) if to any other Lender, to the address, facsimile number,
electronic mail address or telephone number specified in its
Administrative Questionnaire or


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<P align="left" style="margin-left:6%; font-size: 10pt">to such other address, facsimile number, electronic mail
address or telephone number as shall be designated by such party in
a notice to Borrower, Agent, and the Issuing Banks.


<P align="left" style="font-size: 10pt">Notices sent by hand or overnight courier service, or mailed by certified or
registered mail, shall be deemed to have been given when received; notices sent
by facsimile shall be deemed to have been given when sent (except that, if not
given during normal business hours for the recipient, shall be deemed to have
been given at the opening of business on the next business day for the
recipient). Notices delivered through electronic communications to the extent
provided in subsection (b)&nbsp;below, shall be effective as provided in such
subsection (b).



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Electronic Communications. Notices and other communications to
Lenders hereunder may be delivered or furnished by electronic communication
(including e-mail and Internet or intranet websites) pursuant to procedures
approved by Agent, provided that the foregoing shall not apply to notices to
any Lender pursuant to Article&nbsp;II if such Lender has notified the Agent that it
is incapable of receiving notices under such Article by electronic
communication. Agent or Borrower may, in its discretion, agree to accept
notices and other communications to it hereunder by electronic communications
pursuant to procedures approved by it, provided that approval of such
procedures may be limited to particular notices or communications.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Effectiveness of Facsimile Documents and Signatures. Loan Documents
may be transmitted and/or signed by facsimile. The effectiveness of any such
documents and signatures shall, subject to applicable Law, have the same force
and effect as manually-signed originals and shall be binding on all Loan
Parties, Agent and the Lenders. Agent may also require that any such documents
and signatures be confirmed by a manually-signed original thereof; provided,
however, that the failure to request or deliver the same shall not limit the
effectiveness of any facsimile document or signature.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Reliance by Agent and Lenders. Agent and the Lenders shall be
entitled to rely and act upon any notices purportedly given by or on behalf of
Borrower even if (i)&nbsp;such notices were not made in a manner specified herein,
were incomplete or were not preceded or followed by any other form of notice
specified herein, or (ii)&nbsp;the terms thereof, as understood by the recipient,
varied from any confirmation thereof. Borrower shall indemnify each
Agent-Related Person and each Lender from all losses, costs, expenses and
liabilities resulting from the reliance by such Person on each notice
purportedly given by or on behalf of Borrower. All telephonic notices to and
other communications with Agent may be recorded by Agent, and each of the
parties hereto hereby consents to such recording.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3 Use of Proceeds. No portion of the proceeds of any Loans or Letters
of Credit under the Facility shall be used to purchase or carry any &#147;margin
stock&#148; as defined under Regulation &#147;U&#148; of the Board of Governors of the Federal
Reserve System, or to repay or refinance any debt previously incurred by
Borrower for such purpose.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4 Lender&#146;s Records; Account Statements. Agent&#146;s records in respect of
Loans advanced, accrued interest, payments received and applied and other
matters in respect of calculation of the amount of the Obligations shall be
deemed conclusive absent demonstration of


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<P align="left" style="font-size: 10pt">error. All statements of account rendered by Agent to Borrower relating
to principal, accrued interest or costs owing by Borrower under this Agreement
shall be presumed to be correct and accurate unless, within thirty (30)&nbsp;days
after receipt thereof, Borrower shall notify Agent in writing of any claimed
error therein.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5 Indemnity. WHETHER OR NOT THE TRANSACTIONS CONTEMPLATED HEREBY ARE
CONSUMMATED, BORROWER SHALL INDEMNIFY AND HOLD HARMLESS EACH AGENT-RELATED
PERSON, EACH LENDER AND THEIR RESPECTIVE AFFILIATES, DIRECTORS, OFFICERS,
EMPLOYEES, COUNSEL, AGENTS AND ATTORNEYS-IN-FACT (COLLECTIVELY THE
&#147;INDEMNITEES&#148;) FROM AND AGAINST ANY AND ALL LIABILITIES, OBLIGATIONS, LOSSES,
DAMAGES, PENALTIES, CLAIMS, DEMANDS, ACTIONS, JUDGMENTS, SUITS, COSTS, EXPENSES
AND DISBURSEMENTS (INCLUDING ATTORNEY COSTS) OF ANY KIND OR NATURE WHATSOEVER
WHICH MAY AT ANY TIME BE IMPOSED ON, INCURRED BY OR ASSERTED AGAINST ANY SUCH
INDEMNITEE IN ANY WAY RELATING TO OR ARISING OUT OF OR IN CONNECTION WITH (A)
THE EXECUTION, DELIVERY, ENFORCEMENT, PERFORMANCE OR ADMINISTRATION OF ANY LOAN
DOCUMENT OR ANY OTHER AGREEMENT, LETTER OR INSTRUMENT DELIVERED IN CONNECTION
WITH THE TRANSACTIONS CONTEMPLATED THEREBY OR THE CONSUMMATION OF THE
TRANSACTIONS CONTEMPLATED THEREBY, (B)&nbsp;ANY COMMITMENT, LOAN OR LETTER OF CREDIT
OR THE USE OR PROPOSED USE OF THE PROCEEDS THEREFROM (INCLUDING ANY REFUSAL BY
ANY ISSUING BANK TO HONOR A DEMAND FOR PAYMENT UNDER A LETTER OF CREDIT IF THE
DOCUMENTS PRESENTED IN CONNECTION WITH SUCH DEMAND DO NOT STRICTLY COMPLY WITH
THE TERMS OF SUCH LETTER OF CREDIT), (C)&nbsp;ANY ACTUAL OR ALLEGED PRESENCE OR
RELEASE OF HAZARDOUS MATERIALS ON OR FROM ANY PROPERTY CURRENTLY OR FORMERLY
OWNED OR OPERATED BY BORROWER, ANY SUBSIDIARY OR ANY OTHER LOAN PARTY, OR ANY
ENVIRONMENTAL DAMAGES RELATED IN ANY WAY TO BORROWER, ANY SUBSIDIARY OR ANY
OTHER LOAN PARTY, OR (D)&nbsp;ANY ACTUAL OR PROSPECTIVE CLAIM, LITIGATION,
INVESTIGATION OR PROCEEDING RELATING TO ANY OF THE FOREGOING, WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY (INCLUDING ANY INVESTIGATION OF, PREPARATION
FOR, OR DEFENSE OF ANY PENDING OR THREATENED CLAIM, INVESTIGATION, LITIGATION
OR PROCEEDING) AND REGARDLESS OF WHETHER ANY INDEMNITEE IS A PARTY THERETO (ALL
THE FOREGOING, COLLECTIVELY, THE &#147;INDEMNIFIED LIABILITIES&#148;), <B>IN ALL CASES,
WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART, OUT OF THE NEGLIGENCE
OF THE INDEMNITEE; </B>PROVIDED THAT SUCH INDEMNITY SHALL NOT, AS TO ANY
INDEMNITEE, BE AVAILABLE TO THE EXTENT THAT SUCH LIABILITIES, OBLIGATIONS,
LOSSES, DAMAGES, PENALTIES, CLAIMS, DEMANDS, ACTIONS, JUDGMENTS, SUITS, COSTS,
EXPENSES OR DISBURSEMENTS ARE DETERMINED BY A COURT OF COMPETENT JURISDICTION
BY FINAL AND NONAPPEALABLE JUDGMENT TO HAVE RESULTED FROM (1)&nbsp;THE GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH INDEMNITEE OR (2)&nbsp;A BREACH IN BAD
FAITH OF SUCH INDEMNITEE&#146;S OBLIGATIONS HEREUNDER OR UNDER ANY OTHER LOAN
DOCUMENT. NO INDEMNITEE SHALL BE LIABLE FOR ANY DAMAGES ARISING FROM THE USE
BY


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<P align="left" style="font-size: 10pt">OTHERS OF ANY INFORMATION OR OTHER MATERIALS OBTAINED THROUGH INTRALINKS
OR OTHER SIMILAR INFORMATION TRANSMISSION SYSTEMS IN CONNECTION WITH THIS
AGREEMENT, NOR SHALL ANY INDEMNITEE HAVE ANY LIABILITY FOR ANY INDIRECT OR
CONSEQUENTIAL DAMAGES RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR
ARISING OUT OF ITS ACTIVITIES IN CONNECTION HEREWITH OR THEREWITH (WHETHER
BEFORE OR AFTER THE EFFECTIVE DATE). ALL AMOUNTS DUE UNDER THIS PARAGRAPH 11.5
SHALL BE PAYABLE WITHIN TEN BUSINESS DAYS AFTER DEMAND THEREFOR. THE
AGREEMENTS IN THIS PARAGRAPH SHALL SURVIVE THE RESIGNATION OF AGENT, THE
REPLACEMENT OF ANY LENDER, THE TERMINATION OF THE AGGREGATE COMMITMENTS AND THE
REPAYMENT, SATISFACTION OR DISCHARGE OF ALL THE OTHER OBLIGATIONS.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.6 Non-applicability of Chapter&nbsp;346 of Texas Finance Code. Chapter&nbsp;346
of the Texas Finance Code shall not be applicable to this Agreement or the
Facility.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.7 Judgment Interest. It is agreed that any judgment entered by a court
in favor of Lender against Borrower for payment of the Obligations, or any part
thereof, shall provide for post-judgment interest on the amount thereof at a
rate equal to the Maximum Rate.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.8 <B>Interest Limitation. In no contingency or event whatsoever shall the
amount of interest under the Loan Documents paid by any Loan Party, received by
Agent or any Lender, agreed to be paid by any Loan Party, or requested or
demanded to be paid by Agent or any Lender, exceed the Maximum Rate. In the
event any such sums paid to Agent or any Lender by any Loan Party would exceed
the Maximum Rate, Agent or such Lender, as applicable, shall automatically
apply such excess to any unpaid principal or, if the amount of such excess
exceeds said unpaid principal, such excess shall be paid to such Loan Party.
All sums paid, or agreed to be paid, by any Loan Party which are or hereafter
may be construed to be compensation for the use, forbearance, or detention of
money shall be amortized, prorated, spread and allocated in respect of the
Obligations throughout the full Contract Term until the Obligations are paid in
full. Notwithstanding any provisions contained in the Loan Documents, or in

any notes or other related documents executed pursuant hereto, neither Agent
nor any Lender shall ever be entitled to receive, collect or apply as interest
any amount in excess of the Maximum Rate and, in the event Agent or any Lender
ever receives, collects, or applies any amount that otherwise would be in
excess of the Maximum Rate, such amount shall automatically be deemed to be
applied in reduction of the unpaid principal balance of the Obligations and, if
such principal balance is paid in full, any remaining excess shall forthwith be
paid to the Loan Party which made such excess payment. In determining whether
or not the interest paid or payable under any specific contingency exceeds the
Maximum Rate, each Loan Party, Agent and each Lender shall, to the maximum
extent permitted under applicable law, (i)&nbsp;characterize any non-principal
payment as a standby fee, commitment fee, prepayment charge, delinquency charge
or reimbursement for a third-party expense rather than as interest, (ii)
exclude voluntary prepayments and the effect thereof, and (iii)&nbsp;amortize,
prorate, allocate and spread in equal parts throughout the entire period during
which the indebtedness was outstanding the total amount of interest at any time
contracted for, charged or received. Nothing herein contained shall be
construed or so operate as to require any Loan Party to</B>


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<P align="left" style="font-size: 10pt"><B>pay any interest, fees, costs, or charges greater than is permitted by
applicable law. Subject to the foregoing, each Loan Party hereby agrees that
the actual effective rate of interest from time to time existing with respect
to Loans made by any Lender to Borrower, including all amounts agreed to by
Borrower or charged or received by any Lender, which may be deemed to be
interest under applicable law, shall be deemed to be a rate which is agreed to
and stipulated by the Loan Parties, Agent and such Lenders in accordance with
applicable law.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.9 Successors and Assigns.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The provisions of this Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns
permitted hereby, except that Borrower may not assign or otherwise transfer any
of its rights or obligations hereunder without the prior written consent of
each Lender and no Lender may assign or otherwise transfer any of its rights or
obligations hereunder except (i)&nbsp;to an Eligible Assignee in accordance with the
provisions of subparagraph (b)&nbsp;of this paragraph, (ii)&nbsp;by way of participation
in accordance with the provisions of subparagraph (d)&nbsp;of this paragraph, or
(iii)&nbsp;by way of pledge or assignment of a security interest subject to the
restrictions of subparagraph (f)&nbsp;of this paragraph (and any other attempted
assignment or transfer by any party hereto shall be null and void). Nothing in
this Agreement, expressed or implied, shall be construed to confer upon any
Person (other than the parties hereto, their respective successors and assigns
permitted hereby, Participants to the extent provided in subparagraph (d)&nbsp;of
this paragraph and, to the extent expressly contemplated hereby, the
Indemnitees) any legal or equitable right, remedy or claim under or by reason
of this Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Any Lender may at any time assign to one or more Eligible Assignees
all or a portion of its rights and obligations under this Agreement (including
all or a portion of its Commitment and the Loans (including for purposes of
this subparagraph (b), participations in L/C Obligations) at the time owing to
it); provided that (i)&nbsp;except in the case of an assignment of the entire
remaining amount of the assigning Lender&#146;s Commitment and the Loans at the time
owing to it or in the case of an assignment to a Lender or an Affiliate of a
Lender, the aggregate amount of the Commitment (which for this purpose includes
Loans outstanding thereunder) subject to each such assignment, determined as of
the date the Assignment and Assumption with respect to such assignment is
delivered to Agent or, if &#147;Trade Date&#148; is specified in the Assignment and
Assumption, as of the Trade Date, shall not be less than $5,000,000 unless each
of Agent and, so long as no Event of Default has occurred and is continuing,
Borrower otherwise consents (each such consent not to be unreasonably withheld
or delayed); (ii)&nbsp;each partial assignment shall be made as an assignment of a
proportionate part of all the assigning Lender&#146;s rights and obligations under
this Agreement with respect to the Loans or the Commitment assigned; (iii)&nbsp;any
assignment of a Commitment must be approved by Agent and the Issuing Banks
unless the Person that is the proposed assignee is itself a Lender (whether or
not the proposed assignee would otherwise qualify as an Eligible Assignee); and
(iv)&nbsp;the parties to each assignment shall execute and deliver to Agent an
Assignment and Assumption, together with a processing and recordation fee of
$2,500. Subject to acceptance and recording thereof by Agent pursuant to
subparagraph (c)&nbsp;of this Paragraph, from and after the effective date specified
in each Assignment and Assumption, the Eligible Assignee thereunder shall be a
party to this Agreement and, to the extent of the interest assigned by such
Assignment and Assumption, have the rights


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<P align="left" style="font-size: 10pt">and obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender&#146;s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto but shall continue to be entitled to the benefits of paragraphs
4.6, 3.4, 3.2, 11.11 and 1.5 with respect to facts and circumstances occurring
prior to the effective date of such assignment). Upon request, Borrower shall
execute and deliver a Revolving Note to the assignee Lender. Any assignment or
transfer by a Lender of rights or obligations under this Agreement that does
not comply with this subparagraph shall be treated for purposes of this
Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with subparagraph (d)&nbsp;of this Paragraph.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Agent, acting solely for this purpose as an agent of Borrower, shall
maintain at the Principal Office a copy of each Assignment and Assumption
delivered to it and a register for the recordation of the names and addresses
of the Lenders, and the Commitments of, and principal amounts of the Loans and
L/C Obligations owing to, each Lender pursuant to the terms hereof from time to
time (the &#147;Register&#148;). The entries in the Register shall be conclusive, and
Borrower, Agent and the Lenders may treat each Person whose name is recorded in
the Register pursuant to the terms hereof as a Lender hereunder for all
purposes of this Agreement, notwithstanding notice to the contrary. The
Register shall be available for inspection by Borrower, at any reasonable time
and from time to time upon reasonable prior notice. In addition, at any time
that a request for a consent for a material or other substantive change to the
Loan Documents is pending, any Lender wishing to consult with other Lenders in
connection therewith may request and receive from Agent a copy of the Register.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Any Lender may at any time, without the consent of, or notice to,
Borrower or Agent, sell participations to any Person (other than a natural
person or Borrower or any of Borrower&#146;s Affiliates or Subsidiaries (each a
&#147;Participant&#148;) in all or a portion of such Lender&#146;s rights and/or obligations
under this Agreement (including all or a portion of its Commitment and/or the
Loans (including such Lender&#146;s participations in L/C Obligations) owing to it);
provided that (i)&nbsp;such Lender&#146;s obligations under this Agreement shall remain
unchanged, (ii)&nbsp;such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations and (iii)&nbsp;Borrower,
Agent and the other Lenders shall continue to deal solely and directly with
such Lender in connection with such Lender&#146;s rights and obligations under this
Agreement. Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to
enforce this Agreement and to approve any amendment, modification or waiver of
any provision of this Agreement; provided that such agreement or instrument may
provide that such Lender will not, without the consent of the Participant,
agree to any amendment, waiver or other modification described in the first
proviso to paragraph 11.18 that directly affects such Participant. Subject to
subparagraph (e)&nbsp;of this paragraph, Borrower agrees that each Participant shall
be entitled to the benefits of paragraphs 4.6, 3.4 and 3.2 to the same extent
as if it were a Lender and had acquired its interest by assignment pursuant to
subparagraph (b)&nbsp;of this paragraph. To the extent permitted by law, each
Participant also shall be entitled to the benefits of paragraph 9.5 as though
it were a Lender, provided such Participant agrees to be subject to paragraph
4.3 as though it were a Lender.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;A Participant shall not be entitled to receive any greater payment
under paragraph 4.6 or 3.4 than the applicable Lender would have been entitled
to receive with respect to the participation sold to such Participant, unless
the sale of the participation to such Participant is made with Borrower&#146;s prior
written consent.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Any Lender may at any time pledge or assign a security interest in all
or any portion of its rights under this Agreement (including under its Note, if
any) to secure obligations of such Lender, including any pledge or assignment
to secure obligations to a Federal Reserve Bank; provided that no such pledge
or assignment shall release such Lender from any of its obligations hereunder
or substitute any such pledgee or assignee for such Lender as a party hereto.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&#147;Eligible Assignee&#148; as used herein, means (i)&nbsp;a Lender; (ii)&nbsp;an
Affiliate of a Lender; (iii)&nbsp;an Approved Fund and (iv)&nbsp;any other Person (other
than a natural person) approved by (A)&nbsp;Agent and the Issuing Bank, and (B)
unless an Event of Default has occurred and is continuing, Borrower (each such
approval not to be unreasonably withheld or delayed); provided that
notwithstanding the foregoing, &#147;Eligible Assignee&#148; shall not include Borrower
or any of Borrower&#146;s Affiliates or Subsidiaries.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;If the consent of Borrower to an assignment to an Eligible Assignee is
required hereunder (including a consent to an assignment which does not meet
the minimum assignment threshold specified in clause (i)&nbsp;of the proviso to the
first sentence of paragraph 11.9(b)), Borrower shall be deemed to have given
its consent five Business Days after the date notice thereof has been delivered
to Borrower by the assigning Lender (through Agent) unless such consent is
expressly refused by Borrower prior to such fifth Business Day.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Notwithstanding anything to the contrary contained herein, if at any
time Bank of America assigns all of its Commitment and Loans pursuant to
subparagraph (b)&nbsp;above, Bank of America may, upon 30&nbsp;days&#146; notice to Borrower
and the Lenders, resign as an Issuing Bank. In the event of any such
resignation as an Issuing Bank, Borrower shall be entitled to appoint from
among the Lenders a successor Issuing Bank hereunder; provided, however, that
no failure by Borrower to appoint any such successor shall affect the
resignation of Bank of America as an Issuing Bank. If Bank of America resigns
as an Issuing Bank, it shall retain all the rights and obligations of an
Issuing Bank hereunder with respect to all Letters of Credit issued by it and
outstanding as of the effective date of its resignation as an Issuing Bank and
all L/C Obligations with respect thereto (including the right to require the
Lenders to make Base Rate Loans or fund risk participations in Unreimbursed
Amounts pursuant to paragraph 2.10(c)).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.10 Continuing Rights of Agent and Lenders in respect of Obligations.
In the event any amount from time to time applied in reduction of the
Obligations is subsequently set aside, avoided, declared invalid or recovered
by Borrower, or any taxing authority or any trustee or in bankruptcy, or in the
event Agent or any Lender is otherwise required to refund or repay any such
amount pursuant to any applicable law, then the Obligations shall automatically
be deemed to be revived and increased to the extent of such amount as if such
amount had not been so applied.


<P align="center" style="font-size: 10pt">67
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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.11 Fees, Costs and Expenses. Borrower agrees to pay all costs and
expenses (a)&nbsp;incurred by Agent in connection with the Loan Documents, including
without limitation: (i)&nbsp;negotiation, preparation and closing of the Loan
Documents, including reasonable attorneys fees and disbursements, search fees,
filing and recording fees and environmental assessment report fees and title
policy premiums, (ii)&nbsp;ongoing administration of the Loan Documents, including
without limitation, fees and costs incurred in consultation with attorneys,
accountants or appraisers or in connection with any factual investigation, and
(iii)&nbsp;negotiation, preparation and closing of any amendment, waiver or consent
relating to the Loan Documents, including attorneys fees and disbursements,
search fees, filing and recording fees, and (b)&nbsp;incurred by Agent and each
Lender in enforcing any provision of the Loan Documents, collecting the
Obligations, exercising any rights or remedies or pursuing or defending any
claim arising out of, or in any way relating to the Loan Documents, including
in each case, without limitation, fees and costs of attorneys, experts or other
consultants retained by Agent and each Lender in connection therewith and any
other fees pursuant to paragraph 9.3. All fees, costs and expenses for which
Borrower is obligated under the Loan Documents shall be payable to Agent and
each such Lender on demand. At such Lender&#146;s option, the amount of such fees,
costs and expenses may be deducted from the proceeds of any Loan hereunder or
added to the unpaid principal due by Borrower under the Facility, in which
event such fees, costs and expenses will be deemed paid and the amount thereof
shall be treated as a Loan under the Facility.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.12 Acceptance and Performance. This Agreement shall become effective
only upon acceptance by Agent at its offices in Dallas, Dallas County, Texas.
The Obligations are payable at Agent&#146;s offices in Dallas, Dallas County, Texas.
Borrower and Agent each agrees that Dallas County, Texas shall be the
exclusive venue for litigation of any dispute or claim arising under or
relating to the Loan Documents, and that such county is a convenient forum in
which to decide any such dispute. Borrower and Agent each consents to the
personal jurisdiction of the state and federal courts located in Dallas County,
Texas for the litigation of any such dispute or claim.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.13 Obligations. Neither Agent&#146;s nor any Lender&#146;s rights in respect of
the Obligations shall be impaired by reason that the amount thereof at any time
exceeds any stated maximum or other limitation provided herein.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.14 <B>WAIVER OF TRIAL BY JURY. THE PARTIES HERETO AGREE THAT NO PARTY
HERETO SHALL REQUEST A TRIAL BY JURY IN THE EVENT OF LITIGATION BETWEEN OR
AMONG THEM CONCERNING THE LOAN DOCUMENTS OR ANY CLAIMS OR TRANSACTIONS IN
CONNECTION THEREWITH, IN EITHER A STATE OR FEDERAL COURT, THE RIGHT TO TRIAL BY
JURY BEING EXPRESSLY WAIVED BY ALL PARTIES HERETO. AGENT, EACH LENDER AND
BORROWER ACKNOWLEDGES THAT SUCH WAIVER IS MADE WITH FULL KNOWLEDGE AND
UNDERSTANDING OF THE NATURE OF THE RIGHTS AND BENEFITS WAIVED HEREBY, AND WITH
THE BENEFIT OF ADVICE OF COUNSEL OF ITS CHOOSING.</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.15 Copies Valid as Financing Statements. A carbon, photographic or
other reproduction, including photocopy, telecopy or electronic transmission,
of this Agreement or any financing statement shall be sufficient as a financing
statement.


<P align="center" style="font-size: 10pt">68
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.16 <B>Governing Law. This Agreement, and all documents and instruments
executed in connection herewith, shall be governed by and construed according
to the laws of the State of Texas, provided, that to the extent federal law
would allow a higher rate of interest than would be allowed by the laws of the
State of Texas, then with respect to the provisions of any law which purport to
limit the amount of interest that may be contracted for, charged or received in
connection with any of the Obligations, such federal law shall apply.</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.17 <B>ENTIRE AGREEMENT. THIS AGREEMENT, THE NOTES AND THE OTHER LOAN
DOCUMENTS REFERRED TO HEREIN EMBODY THE FINAL, ENTIRE AGREEMENT AMONG THE
PARTIES HERETO AND SUPERSEDE ANY AND ALL PRIOR COMMITMENTS, TERM SHEETS,
AGREEMENTS, REPRESENTATIONS AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL,
RELATING TO THE SUBJECT MATTER HEREOF AND MAY NOT BE CONTRADICTED OR VARIED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS
OF THE PARTIES HERETO. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES
HERETO.</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.18 Amendments. No amendment or waiver of any provision of this
Agreement, the Revolving Notes or any other Loan Document to which any Loan
Party is a party, nor any consent to any departure by such Loan Party
therefrom, shall in any event be effective unless the same shall be agreed or
consented to by the Required Lenders and the applicable Loan Party or Loan
Parties in writing, and each such waiver or consent shall be effective only in
the specific instance and for the specific purpose for which given; provided,
however, that no amendment, waiver or consent shall, unless in writing and
signed by all of the Lenders and the applicable Loan Party or Loan Parties, do
any of the following: (a)&nbsp;increase the Commitments of the Lenders or subject
the Lenders to any additional obligations; (b)&nbsp;reduce the principal of, or
interest on, the Loans or any fees or other amounts payable hereunder; (c)
postpone any date fixed for any payment (including, without limitation, any
mandatory prepayment) of principal of, or interest on, the Loans or any fees or
other amounts payable hereunder; (d)&nbsp;waive any of the conditions precedent
specified in Article&nbsp;V; (e)&nbsp;change the Commitment Percentages or the aggregate
unpaid principal amount of the Loans or the number or interests of the Lenders
which shall be required for the Lenders or any of them to take any action under
this Agreement; or (f)&nbsp;except as expressly authorized by this Agreement and
provided such Guarantor has been, or concurrently with the release of the
Lenders, will be released and discharged as guarantor under and in respect of
the Private Placement Debt, release any guaranty of all or any portion of the
Obligations; and provided further, however, that no amendment, waiver or
consent relating to Article&nbsp;X shall require the agreement of any Loan Party.
Notwithstanding anything to the contrary contained in this paragraph 11.18, no
amendment, waiver or consent shall be made with respect to Article&nbsp;X hereof
without the prior written consent of Agent.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.19 Accounting Terms. Except as otherwise specifically provided herein,
all accounting and financial terms used herein, and the compliance with each
financial covenant contained herein, shall be determined in accordance with
GAAP.


<P align="center" style="font-size: 10pt">69
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.20 Exhibits. All exhibits referenced herein, and attached hereto, are
incorporated in this Agreement and made a part hereof for all purposes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.21 Cumulative Rights. All rights and remedies of Agent and the Lenders
under the Loan Documents are cumulative, and are in addition to rights and
remedies available to Agent and the Lenders by law. Such rights and remedies
may be exercised concurrently or successively, at such times as Agent and the
Lenders may determine in their discretion. Borrower waives any right to
require marshalling.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.22 Severability. If any provision of this Agreement is held to be
illegal, invalid, or unenforceable under any present or future laws effective
during the Contract Term, such provisions shall be fully severable, and this
Agreement shall be construed and enforced as if such illegal, invalid, or
unenforceable provision had never comprised a part of this Agreement. In such
case, the remaining provisions of the Agreement shall remain in full force and
effect and shall not be effected thereby.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.23 Multiple Counterparts. This Agreement may be executed
simultaneously in one or more multiple originals, each of which shall be deemed
an original, but all of which together shall constitute one and the same
Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.24 Survival. All covenants, agreements, representations, and
warranties made by Borrower herein shall survive the execution, delivery, and
closing of this Agreement, and all documents executed in connection herewith,
and shall not be affected by any investigation made by any party.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.25 Intentionally Omitted.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.26 Confidentiality. Each of the Agent and the Lenders agrees to
maintain the confidentiality of the Information (as defined below), except that
Information may be disclosed (a)&nbsp;to its and its Affiliates&#146; directors,
officers, employees and agents, including accountants, legal counsel and other
advisors (it being understood that the Persons to whom such disclosure is made
will be informed of the confidential nature of such Information and instructed
to keep such Information confidential), (b)&nbsp;to the extent requested by any
regulatory authority (including any self-regulatory authority, such as the
National Association of Insurance Commissioners), (c)&nbsp;to the extent required by
applicable laws or regulations or by any subpoena or similar legal process, (d)
to any other party hereof, (e)&nbsp;in connection with the exercise of any remedies
hereunder or under any other Loan Document or any action or proceeding relating
to this Agreement or any other Loan Document or the enforcement of rights
hereunder or thereunder, (f)&nbsp;subject to an agreement containing provisions
substantially the same as those of this paragraph, to (i)&nbsp;any assignee of or
participant in, or any prospective assignee or proposed participant in, any of
its rights or obligations under this Agreement or (ii)&nbsp;any actual or
prospective counterparty (or its advisors) to any swap or derivative
transaction relating to the Borrower and its obligations, (g)&nbsp;with the consent
of the borrower or (h)&nbsp;to the extent such Information (x)&nbsp;becomes publicly
available other than as a result of a breach of this paragraph or (y)&nbsp;becomes
available to the Agent or any Lender on a nonconfidential basis from a source
other than the Borrower. For purposes of this paragraph, &#147;Information&#148; means
all information received from any Loan Party relating to any Loan Party or any
of their respective businesses, other than any such information


<P align="center" style="font-size: 10pt">70
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">that is available to the Agent or any Lender on a nonconfidential basis
prior to disclosure by any Loan Party, provided that, in the case of
information received from a Loan Party after the date hereof, such information
is clearly identified at the time of delivery as confidential. Any Person
required to maintain the confidentiality of Information as provided in this
paragraph shall be considered to have complied with its obligation to do so if
such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own
confidential information.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.27 Payments Set Aside. To the extent that any payment by or on behalf
of Borrower is made to Agent or any Lender, or Agent or any Lender exercises
its right of set-off, and such payment or the proceeds of such set-off or any
part thereof is subsequently invalidated, declared to be fraudulent or
preferential, set aside or required (including pursuant to any settlement
entered into by Agent or such Lender in its discretion) to be repaid to a
trustee, receiver or any other party, in connection with any proceeding under
any Debtor Relief Law or otherwise, then (a)&nbsp;to the extent of such recovery,
the obligation or part thereof originally intended to be satisfied shall be
revived and continued in full force and effect as if such payment had not been
made or such set-off had not occurred, and (b)&nbsp;each Lender severally agrees to
pay to Agent upon demand its applicable share of any amount so recovered from
or repaid by Agent, plus interest thereon from the date of such demand to the
date such payment is made at a rate per annum equal to the Federal Funds Rate
from time to time in effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.28 USA Patriot Act Notice. Each Lender and Agent (for itself and not
on behalf of any Lender) hereby notifies Borrower that pursuant to the
requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into
law October&nbsp;26, 2003)) (the &#147;Act&#148;), it is required to obtain, verify and record
information that identifies Borrower, which information includes the name and
address of Borrower and other information that will allow such Lender or the
Agent, as applicable, to identify Borrower in accordance with the Act.


<P align="center" style="font-size: 10pt"><B>REMAINDER OF PAGE LEFT INTENTIONALLY BLANK</B>



<P align="center" style="font-size: 10pt">71
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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">EXECUTED effective as of the 27th day of August, 2004.


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="44%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>BORROWER:</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>ENCORE WIRE LIMITED</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">By: EWC GP Corp., its general partner</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ DANIEL L. JONES</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade width="60%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;Daniel L. Jones, President</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Address for Notices:</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">1410 Millwood Road, P.O. Box 1149</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">McKinney, Texas 75069-0545</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Telecopy: 972-562-4744</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Telephone: 972-562-9473</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Attention: <U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U></TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD colspan="3" valign="top" align="left"><DIV style="margin-left:58px; text-indent:-0px">
<U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
&nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
&nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
&nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
&nbsp; &nbsp; &nbsp; &nbsp;</U></DIV></TD>
</TR>


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</DIV>



<P align="center" style="font-size: 10pt">72
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="44%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>AGENT:</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>BANK OF AMERICA, N.A.</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ SUZANNE M. PAUL</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Name: Suzanne M. Paul</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Title: Vice-President</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Address for Notices:</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Bank of America, N.A.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">231 S LA SALLE ST, 8th Floor</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">CHICAGO IL 60604</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Attn: Rosanne Parsill</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">BANK OF AMERICA, N.A., as a Lender</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Commitment: $50,000,000</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ STEVEN MACKENZIE</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Steven Mackenzie<BR>
Senior Vice President</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Address for Notices:</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Bank of America, N.A.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">901 Main Street, 67th Floor</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Dallas, TX 75202</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Attention: Steven Mackenzie</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">73
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="44%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>WELLS FARGO BANK,
NATIONAL</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>ASSOCIATION,</B> as a
Lender</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Commitment: $35,000,000</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ RALPH C. HAMM, III</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name: Ralph C. Hamm, III<BR>

Title: Vice-President</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Address for Notices:</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Wells Fargo Bank, National Association</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">4975 Preston Park Boulevard, Suite&nbsp;280</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Plano, Texas 75093</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">Attention: Ralph C. Hamm, III</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">74
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="right" style="font-size: 10pt"><B>EXHIBIT A</B>



<P align="center" style="font-size: 10pt"><B>FORM OF ASSIGNMENT AND ASSUMPTION</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Assignment and Assumption (this &#147;Assignment&#148;) is dated as of the
Effective Date set forth below and is entered into by and between &#091;Insert name
of Assignor&#093; (the &#147;Assignor&#148;) and &#091;Insert name of Assignee&#093; (the &#147;Assignee&#148;).
Capitalized terms used but not defined herein shall have the meanings given to
them in the Credit Agreement identified below (the &#147;Credit Agreement&#148;), receipt
of a copy of which is hereby acknowledged by the Assignee. The Standard Terms
and Conditions set forth in Annex 1 attached hereto are hereby agreed to and
incorporated herein by reference and made a part of this Assignment and
Assumption as if set forth herein in full.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For an agreed consideration, the Assignor hereby irrevocably sells and
assigns to the Assignee, and the Assignee hereby irrevocably purchases and
assumes from the Assignor, subject to and in accordance with the Standard Terms
and Conditions and the Credit Agreement, as of the Effective Date inserted by
Agent as contemplated below (i)&nbsp;all of the Assignor&#146;s rights and obligations as
a Lender under the Credit Agreement and any other documents or instruments
delivered pursuant thereto to the extent related to the amount and percentage
interest identified below of all of such outstanding rights and obligations of
the Assignor under the respective facilities identified below (including,
without limitation, the Letters of Credit and the Guarantees included in such
facilities) and (ii)&nbsp;to the extent permitted to be assigned under applicable
law, all claims, suits, causes of action and any other right of the Assignor
(in its capacity as a Lender) against any Person, whether known or unknown,
arising under or in connection with the Credit Agreement, any other documents
or instruments delivered pursuant thereto or the loan transactions governed
thereby or in any way based on or related to any of the foregoing, including,
but not limited to, contract claims, tort claims, malpractice claims, statutory
claims and all other claims at law or in equity related to the rights and
obligations sold and assigned pursuant to clause (i)&nbsp;above (the rights and
obligations sold and assigned pursuant to clauses (i)&nbsp;and (ii)&nbsp;above being
referred to herein collectively as, (the &#147;Assigned Interest&#148;). Such sale and
assignment is without recourse to the Assignor and, except as expressly
provided in this Assignment and Assumption, without representation or warranty
by the Assignor.


<P align="left" style="font-size: 10pt">1.&nbsp;&nbsp;&nbsp; Assignor: <U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U>



<P align="left" style="font-size: 10pt">2.&nbsp;&nbsp;&nbsp; Assignee: <U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U> &#091;and is an Affiliate of &#091;identify
Lender&#093;



<P align="left" style="font-size: 10pt">3.&nbsp;&nbsp;&nbsp; Borrower(s): <U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U>



<P align="left" style="font-size: 10pt">4.&nbsp;&nbsp;&nbsp;
Administrative Agent:: <U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U>, as Agent under the
Credit Agreement



<P align="left" style="font-size: 10pt">5.&nbsp;&nbsp;&nbsp; Credit Agreement: Credit Agreement, dated as of August&nbsp;27, 2004 among
Borrower, the Lenders from time to time party thereto, Bank of America, N.A.,
as Administrative Agent and Issuing Bank



<P align="left" style="font-size: 10pt">6. &nbsp;&nbsp;&nbsp;Assigned Interest:



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Aggregate</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amount of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Amount of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Percentage</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Commitment/Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Commitment/Loans</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Assigned of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>&nbsp;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center"><B>Facility Assigned</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>For all Lenders*</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Assigned*</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Commitment/Loans*</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>CUSIP No.</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">

<TD align="left"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="left"><DIV style="margin-left:10px; text-indent:-10px"><HR noshade size="1" width="80%"></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><HR noshade size="1"> </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><HR noshade size="1"> </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><HR noshade size="1"> </TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="left"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="left"><DIV style="margin-left:10px; text-indent:-10px"><HR noshade size="1" width="80%"></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><HR noshade size="1"> </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><HR noshade size="1"> </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><HR noshade size="1"> </TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #eeeeee">
<TD align="left"><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD align="left"><DIV style="margin-left:10px; text-indent:-10px"><HR noshade size="1" width="80%"></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><HR noshade size="1"> </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&nbsp;</TD>
    <TD align="right"><HR noshade size="1"> </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right"><HR noshade size="1"> </TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><!-- End Table Body -->
</TABLE>
</DIV>



<P align="left" style="font-size: 10pt">7.&nbsp;&nbsp;&nbsp; Trade Date: <U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U>&#093;



<P align="left" style="font-size: 10pt">Effective Date: <U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U>, 20__ &#091;TO BE INSERTED BY ADMINISTRATIVE
AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE
REGISTER THEREFOR.&#093;



<P align="left" style="font-size: 10pt">The terms set forth in this Assignment and Assumption are hereby agreed to:



<P align="left" style="font-size: 10pt">ASSIGNOR



<P align="left" style="font-size: 10pt">&#091;NAME OF ASSIGNOR&#093;



<P align="left" style="font-size: 10pt">By: <U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U>



<P align="left" style="font-size: 10pt">Title:



<P align="left" style="font-size: 10pt">ASSIGNEE



<P align="left" style="font-size: 10pt">&#091;NAME OF ASSIGNEE&#093;



<P align="left" style="font-size: 10pt">By: <U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U>



<P align="left" style="font-size: 10pt">Title:



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">&#091;Consented to and&#093; Accepted:



<P align="left" style="font-size: 10pt">BANK OF AMERICA as



<P align="left" style="font-size: 10pt">Administrative Agent



<P align="left" style="font-size: 10pt">By: <U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:


<P align="left" style="font-size: 10pt">&#091;Consented to:&#093;



<P align="left" style="font-size: 10pt">By: <U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt"><B>ANNEX 1 TO ASSIGNMENT AND ASSUMPTION</B>



<P align="center" style="font-size: 10pt"><B>STANDARD TERMS AND CONDITIONS FOR ASSIGNMENT AND ASSUMPTION</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;Representations and Warranties.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;1.1. Assignor. The Assignor (a)&nbsp;represents and warrants that (i)&nbsp;it
is the legal and beneficial owner of the Assigned Interest, (ii)&nbsp;the
Assigned Interest is free and clear of any lien, encumbrance or other
adverse claim and (iii)&nbsp;it has full power and authority, and has taken
all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby; and
(b)&nbsp;assumes no responsibility with respect to (i)&nbsp;any statements,
warranties or representations made in or in connection with the Credit
Agreement or any other Loan Document, (ii)&nbsp;the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Loan
Documents or any collateral thereunder, (iii)&nbsp;the financial condition of
Borrower, any of its Subsidiaries or Affiliates or any other Person
obligated in respect of any Loan Document or (iv)&nbsp;the performance or
observance by Borrower, any of its Subsidiaries or Affiliates or any
other Person of any of their respective obligations under any Loan
Document.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;1.2. Assignee. The Assignee (a)&nbsp;represents and warrants that (i)&nbsp;it
has full power and authority, and has taken all action necessary, to
execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby and to become a Lender under the Credit
Agreement, (ii)&nbsp;it meets all requirements of an Eligible Assignee under
the Credit Agreement (subject to receipt of such consents as may be
required under the Credit Agreement), (iii)&nbsp;from and after the Effective
Date, it shall be bound by the provisions of the Credit Agreement as a
Lender thereunder and, to the extent of the Assigned Interest, shall have
the obligations of a Lender thereunder, (iv)&nbsp;it has received a copy of
the Credit Agreement, together with copies of the most recent financial
statements delivered pursuant to paragraphs 7.5 and 7.6 thereof, as
applicable, and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into
this Assignment and Assumption and to purchase the Assigned Interest on
the basis of which it has made such analysis and decision independently
and without reliance on Agent or any other Lender, and (v)&nbsp;if it is a
Lender that is not incorporated or otherwise formed under the laws of the
U.S. or a state thereof, attached hereto is any documentation required to
be delivered by it pursuant to the terms of the Credit Agreement, duly
completed and executed by the Assignee; and (b)&nbsp;agrees that (i)&nbsp;it will,
independently and without reliance on Agent, the Assignor or any other
Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Loan Documents, and (ii)&nbsp;it will
perform in accordance with their terms all of the obligations which by
the terms of the Loan Documents are required to be performed by it as a
Lender.


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;2. Payments. From and after the Effective Date, Agent shall make all
payments in respect of the Assigned Interest (including payments of principal,
interest, fees and other amounts) to the Assignor for amounts which have
accrued to but excluding the Effective Date and to the Assignee for amounts
which have accrued from and after the Effective Date.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;3. General Provisions. This Assignment and Assumption shall be binding
upon, and inure to the benefit of, the parties hereto and their respective
successors and assigns. This Assignment and Assumption may be executed in any
number of counterparts, which together shall constitute one instrument.
Delivery of an executed counterpart of a signature page of this Assignment and
Assumption by telecopy shall be effective as delivery of a manually executed
counterpart of this Assignment and Assumption. This Assignment and Assumption
shall be governed by, and construed in accordance with, the law of the State of
Texas.


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt"><B>EXHIBIT B</B>



<P align="center" style="font-size: 10pt"><B>REVOLVING NOTE</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">$<U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Effective as of <U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U></TD>
</TR>

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</TABLE>
</DIV>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOR VALUE RECEIVED, the undersigned, ENCORE WIRE LIMITED, a Texas limited
partnership (&#147;Borrower&#148;) hereby promises to pay to the order of <U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U>,
a national bank (&#147;Lender&#148;), at the principal office of Agent at 901 Main
Street, 7th Floor, Dallas, Texas 75202 the principal amount of <U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U>
MILLION and NO/100 DOLLARS ($<U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U>000,000.00) or such lesser amount as may from
time to time be advanced and remain unpaid and outstanding hereunder, together
with accrued interest as provided hereinbelow.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This promissory note is executed and delivered by Borrower pursuant to the
certain Credit Agreement dated as of August&nbsp;27 2004, among Borrower, certain
lenders, including Lender, and Bank of America, N.A., as agent for such lenders
(as it may be amended, restated or otherwise modified from time to time,
hereinafter called the &#147;Credit Agreement&#148;) and is one of the Revolving Notes
defined therein. All terms defined in the Credit Agreement, wherever used
herein, shall have the same meaning prescribed by the Credit Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All loans from time to time requested by Borrower hereunder are subject to
the terms and provisions of the Credit Agreement. The maximum principal amount
at any time outstanding hereunder shall not at any time exceed an amount equal
to Lender&#146;s Commitment. The unpaid principal from day to day outstanding under
this promissory note shall bear interest at the applicable rate prescribed for
the Facility as provided by the Credit Agreement. Lender&#146;s records shall be
conclusive proof of loans, payments and interest accruals hereunder, absent
proof by Borrower of error.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All unpaid principal and accrued interest under this promissory note shall
be payable as follows: (a)&nbsp;accrued interest on Base Rate Loans shall be payable
quarterly on the first day of each calendar quarter, and (b)&nbsp;accrued interest
on any Eurodollar Rate Loan shall be payable on the last day of the Interest
Period applicable thereto, respectively. All unpaid principal borrowed under
the Facility and all unpaid accrued interest thereon, and all other amounts
payable hereunder relative to the Facility, shall be due and payable to Lender
in full, and the Facility shall terminate, on the last day of the Contract
Term. To the extent that any accrued interest is not paid on its due date as
specified above, Lender may at its option (but with no obligation to do so),
debit the amount of such accrued interest against any account maintained by
Borrower with Lender or add such amount to the unpaid principal due by Borrower
under the Facility.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If at any time, from time to time, the aggregate unpaid principal amount
outstanding hereunder exceeds the maximum amount allowed to be outstanding
hereunder, Borrower shall make an immediate payment of principal in an amount
not less than the amount of such excess. All such amounts, if any, payable by
Borrower shall be deemed to be payable on demand, and may be offset by Lender
against any amount owing by Lender to Borrower, without prior notice to
Borrower.


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This promissory note in all respects is subject to the Credit Agreement.
Lender and Agent shall have all rights and remedies as provided in the Credit
Agreement, specifically including, without limitation, the right of
acceleration and all other rights and remedies as are provided by Article&nbsp;IX
(&#147;Remedies&#148;) thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No delay by Lender and/or Agent in the exercise of any power or right
hereunder shall operate as a waiver or impair Lender&#146;s or Agent&#146;s rights and
remedies under this promissory note or the Loan Documents. Borrower and each
other party ever liable hereunder severally hereby expressly waives
presentment, demand, notice of intention to demand, notice of intention to
accelerate, notice of acceleration, protest, notice of protest and any other
notice of any kind, and agrees that its liability hereunder shall not be
affected by any renewals, extensions or modifications, from time to time, of
the time or manner of payment hereof, or by any release or modification of any
security for the obligations and indebtedness evidenced hereby.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower hereby promises to pay to Lender and Agent all reasonable fees,
costs and expenses incurred by Lender or Agent, as applicable, in enforcement
and collection of any amounts under this promissory note, including without
limitation, reasonable attorneys fees.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In no contingency or event whatsoever shall the amount of interest under
this promissory note paid by Borrower, received by Lender and/or Agent, agreed
to be paid by Borrower, or requested or demanded to be paid by Lender or Agent,
exceed the Maximum Rate. In the event any such sums paid to Lender and/or
Agent by Borrower would exceed the maximum amount permitted by applicable law,
Lender and/or Agent, as applicable, shall automatically apply such excess to
any unpaid principal or, if the amount of such excess exceeds said unpaid
principal, such excess shall be paid to Borrower. All sums paid, or agreed to
be paid, by Borrower hereunder which are or hereafter may be construed to be
compensation for the use, forbearance, or detention of money shall be
amortized, prorated, spread and allocated in respect of the Obligations
throughout the full Contract Term until the Obligations are paid in full.
Notwithstanding any provisions contained in the Loan Documents or herein,
neither Lender nor Agent shall ever be entitled to receive, collect or apply as
interest any amount in excess of the Maximum Rate and, in the event Lender
and/or Agent ever receives, collects, or applies any amount that otherwise
would be in excess of the Maximum Rate, such amount shall automatically be
deemed to be applied in reduction of the unpaid principal balance of the
Obligations and, if such principal balance is paid in full, any remaining
excess shall forthwith be paid to Borrower. In determining whether or not the
interest paid or payable under any specific contingency exceeds the Maximum
Rate, Borrower, Lender and/or Agent, as applicable, shall, to the maximum
extent permitted under applicable law, (i)&nbsp;characterize any non-principal
payment as a standby fee, commitment fee, prepayment charge, delinquency charge
or reimbursement for a third-party expense rather than as interest, (ii)
exclude voluntary prepayments and the effect thereof, and (iii)&nbsp;amortize,
prorate, allocate and spread in equal parts throughout the entire period during
which the indebtedness was outstanding the total amount of interest at any time
contracted for, charged or received. Nothing herein contained shall be
construed or so operate as to require Borrower to pay any interest, fees,
costs, or charges greater than is permitted by applicable law. Subject to the
foregoing, Borrower hereby agrees that the actual effective rate of interest
from time to time existing with respect to loans made by Lender to Borrower
hereunder, including all amounts agreed to by Borrower or charged or received
by Lender and/or Agent,


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">which maybe deemed to be interest under applicable law, shall be deemed to
be a rate which is agreed to and stipulated by Borrower and/or Lender in
accordance with applicable law.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This promissory note may not be changed, amended or modified except in
writing executed by Lender and Borrower.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>This promissory note shall be governed by and construed according to the
laws of the State of Texas, except as to provisions relating to the rate of
interest to be charged on the unpaid principal hereof, in which case, to the
extent federal law otherwise would allow a higher rate of interest than would
be allowed by the laws of the State of Texas, such federal law shall apply.</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EXECUTED
this <U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U> day of <U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U><U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U>, effective as the date
specified above.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="54%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">ENCORE WIRE LIMITED</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">By: EWC GP CORP., its general partner</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>

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</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P align="center" style="font-size: 10pt"><B>EXHIBIT C</B>


<P align="center" style="font-size: 10pt"><B>FORM OF GUARANTY</B>
</div>
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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt"><B><I>EXHIBIT C-1</I></B>


<P align="center" style="font-size: 10pt"><B>PARENT GUARANTY</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GUARANTY (this &#147;Guaranty&#148;), dated as of August&nbsp;27, 2004, made by Encore
Wire Corporation (the &#147;Guarantor&#148;), in favor of the Guarantied Parties referred
to below.


<P align="center" style="font-size: 10pt">W I T N E S S E T H:



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Encore Wire Limited, a Texas limited partnership (the
&#147;Borrower&#148;), has entered into a Credit Agreement, dated as of August&nbsp;27, 2004,
among the Lenders party thereto, and Bank of America, N.A., as the
Administrative Agent and Issuing Bank (hereinafter, the &#147;Administrative Agent&#148;)
for the Lenders, (said Credit Agreement, as it may be amended, supplemented or
otherwise modified from time to time, being the &#147;Credit Agreement&#148;, and
capitalized terms not defined herein but defined therein being used herein as
therein defined); and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Guarantor indirectly owns all of the partnership interests in
the Borrower, and the Guarantor will derive direct and indirect economic
benefit from the Loans and Letters of Credit under the Credit Agreement; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, it is a condition precedent to the obligation of the Lenders to
make Loans and issue or participate in Letters of Credit under the Credit
Agreement that the Guarantor shall have executed and delivered this Guaranty;
and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Lenders, the Administrative Agent, any Lender or Affiliate of
any Lender entering into a Swap Contract (provided that such Lender was a
Lender at the time such Swap Contract was entered into) with the Borrower or
any Affiliate of the Borrower, and the beneficiaries of each indemnification
obligation undertaken by any Loan Party under any Loan Document are herein
referred to as the &#147;Guarantied Parties&#148;;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the premises and to induce the Lenders
to make Loans and the Issuing Bank to issue Letters of Credit, the Guarantors
hereby agree as follows:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1. Guaranty. The Guarantor hereby unconditionally and irrevocably
guarantees the full and prompt payment when due, whether at stated maturity, by
acceleration or otherwise, of, and the performance of, (a)&nbsp;the Obligations,
whether now or hereafter existing and whether for principal, interest, fees,
expenses or otherwise, (b)&nbsp;all Swap Obligations owed to any Lender or any
Affiliate of a Lender (provided at the time of execution of the Swap Contract
related to such Swap Obligations such Lender is a party to the Credit
Agreement, herein called a &#147;Guarantied Swap Contract&#148;), (c)&nbsp;any and all
reasonable out-of-pocket expenses (including, without limitation, reasonable
expenses and reasonable counsel fees and expenses of the Administrative Agent
and the Lenders) incurred by any of the Guarantied Parties in enforcing any
rights under this Guaranty and (d)&nbsp;all present and future amounts that would
become due but for the operation of any provision of Debtor Relief Laws, and
all present and future accrued and unpaid interest, including, without
limitation, all post-petition interest if the Borrower or any Guarantor
voluntarily or involuntarily becomes subject to any Debtor Relief Laws (the
items set forth in clauses (a), (b), (c)&nbsp;and (d)&nbsp;immediately above being herein
referred to as the &#147;Guarantied Obligations&#148;). Upon failure of the Borrower to
pay any of the Guarantied


<P align="center" style="font-size: 10pt">Page - 1
<BR>
Form of Parent Guaranty
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">Obligations when due after the giving by the Administrative Agent and/or
the Lenders of any notice and the expiration of any applicable cure period in
each case provided for in the Credit Agreement and other Loan Documents, or any
Guarantied Swap Contract (whether at stated maturity, by acceleration or
otherwise), the Guarantor hereby further agrees to promptly pay the same after
the Guarantor&#146;s receipt of notice from the Administrative Agent of the
Borrower&#146;s failure to pay the same, without any other demand or notice
whatsoever, including without limitation, any notice having been given to the
Guarantor of either the acceptance by the Guarantied Parties of this Guaranty
or the creation or incurrence of any of the Guarantied Obligations. This
Guaranty is an absolute guaranty of payment and performance of the Guarantied
Obligations and not a guaranty of collection, meaning that it is not necessary
for the Guarantied Parties, in order to enforce payment by the Guarantor, first
or contemporaneously to accelerate payment of any of the Guarantied
Obligations, to institute suit or exhaust any rights against any Loan Party, or
to enforce any rights against any collateral. Notwithstanding anything herein
or in any other Loan Document or Guarantied Swap Contract to the contrary, in
any action or proceeding involving any state corporate law, or any state or
federal bankruptcy, insolvency, reorganization or other law affecting the
rights of creditors generally, if, as a result of applicable law relating to
fraudulent conveyance or fraudulent transfer, including Section&nbsp;548 of
Bankruptcy Code or any applicable provisions of comparable state law
(collectively, &#147;Fraudulent Transfer Laws&#148;), the obligations of the Guarantor
under this Section&nbsp;1 would otherwise, after giving effect to (a)&nbsp;all other
liabilities of the Guarantor, contingent or otherwise, that are relevant under
such Fraudulent Transfer Laws (specifically excluding, however, any liabilities
of the Guarantor in respect of intercompany indebtedness to the Borrower to the
extent that such indebtedness would be discharged in an amount equal to the
amount paid by the Guarantor hereunder) and (b)&nbsp;to the value as assets of the
Guarantor (as determined under the applicable provisions of such Fraudulent
Transfer Laws) of any rights of subrogation, contribution, reimbursement,
indemnity or similar rights held by the Guarantor pursuant to (i)&nbsp;applicable
requirements of Law, (ii)&nbsp;Section&nbsp;10 hereof or (iii)&nbsp;any other contractual
obligations providing for an equitable allocation among the Guarantor and other
Subsidiaries or Affiliates of the Borrower of obligations arising under this
Guaranty or other guaranties of the Guarantied Obligations by such parties, be
held or determined to be void, invalid or unenforceable, or subordinated to the
claims of any other creditors, on account of the amount of its liability under
this Section&nbsp;1, then the amount of such liability shall, without any further
action by the Guarantor, any Lender, the Administrative Agent or any other
Person, be automatically limited and reduced to the highest amount that is
valid and enforceable and not subordinated to the claims of other creditors as
determined in such action or proceeding.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2. Guaranty Absolute. The Guarantor guarantees that the
Guarantied Obligations will be paid strictly in accordance with the terms of
the Credit Agreement, the Revolving Notes, the other Loan Documents and the
Guarantied Swap Contracts, without set-off or counterclaim, and regardless of
any Applicable Law (as hereafter defined) now or hereafter in effect in any
jurisdiction affecting any of such terms or the rights of the Guarantied
Parties with respect thereto. For purposes hereof, &#147;Applicable Law&#148; means (a)
in respect of any Person, all provisions of Laws applicable to such Person, and
all orders and decrees of all courts and determinations of arbitrators
applicable to such Person and (b)&nbsp;in respect of contracts made or performed in
the State of Texas, &#147;Applicable Law&#148; shall also mean the laws of the United
States of America, including, without limitation in addition to the foregoing,
12 USC Sections&nbsp;85 and 86, as amended to the date hereof and as the same may be
amended at any time and from time to time hereafter, and any other statute of
the United States of America now or at any time hereafter


<P align="center" style="font-size: 10pt">Page - 2
<BR>
Form of Parent Guaranty
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">prescribing the maximum rates of interest on loans and extensions of
credit, and the laws of the State of Texas. The liability of the Guarantor
under this Guaranty shall be absolute and unconditional irrespective of:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any lack of validity or enforceability of any provision of any
other Loan Document, any Guarantied Swap Contract or any other agreement
or instrument relating to any Loan Document, or avoidance or
subordination of any of the Guarantied Obligations;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any change in the time, manner or place of payment of, or in any
other term of, or any increase in the amount of, all or any of the
Guarantied Obligations, or any other amendment or waiver of any term of,
or any consent to departure from any requirement of, the Credit
Agreement, the Revolving Notes, the Guarantied Swap Contracts or any of
the other Loan Documents;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any exchange, release or non-perfection of any lien on any
collateral for, or any release of any other Loan Party or amendment or
waiver of any term of any other guaranty of, or any consent to departure
from any requirement of any other guaranty of, all or any of the
Guarantied Obligations;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the absence of any attempt to collect any of the Guarantied
Obligations from the Borrower or from any other Loan Party or any other
action to enforce the same or the election of any remedy by any of the
Guarantied Parties;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any waiver, consent, extension, forbearance or granting of any
indulgence by any of the Guarantied Parties with respect to any provision
of any Guarantied Swap Contract or any other Loan Document;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the election by any of the Guarantied Parties in any proceeding
under any Debtor Relief Law;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any borrowing or grant of a security interest by the Borrower,
as debtor-in-possession, under any Debtor Relief Law; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any other circumstance which might otherwise constitute a legal
or equitable discharge or defense of the Borrower or any other Guarantor
other than payment or performance of the Guarantied Obligations.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3. Waiver.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Guarantor hereby (i)&nbsp;waives (A)&nbsp;promptness, diligence, and, except
as otherwise provided herein, notice of acceptance and any and all other
notices except as otherwise expressly provided for in the Loan Documents,
including, without limitation, notice of intent to accelerate and notice of
acceleration, with respect to any of the Guarantied Obligations or this
Guaranty, (B)&nbsp;any requirement that any of the Guarantied Parties protect,
secure, perfect or insure any security interest in or other lien on any
property subject thereto or exhaust any right or take any action against the
Borrower or any other Person or any collateral, (C)&nbsp;the filing of any claim
with a court in the event of receivership or bankruptcy of the Borrower or any
other Person, (D)&nbsp;except as otherwise provided herein, protest or notice with
respect to nonpayment of


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<BR>
Form of Parent Guaranty
</DIV>

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<P align="left" style="font-size: 10pt">all or any of the Guarantied Obligations, (E)&nbsp;the benefit of any statute
of limitation, (F)&nbsp;except as otherwise provided herein, all demands whatsoever
(and any requirement that demand be made on the Borrower or any other Person as
a condition precedent to the Guarantor&#146;s obligations hereunder), (G)&nbsp;all rights
by which the Guarantor might be entitled to require suit on an accrued right of
action in respect of any of the Guarantied Obligations or require suit against
the Borrower, the Guarantor or any other Person, whether arising pursuant to
Section&nbsp;34.02 of the Texas Business and Commerce Code, as amended, Section
17.001 of the Texas Civil Practice and Remedies Code, as amended, Rule&nbsp;31 of
the Texas Rules of Civil Procedure, as amended, or otherwise, (H)&nbsp;any defense
based upon an election of remedies by any Guarantied Party, or (I)&nbsp;notice of
any events or circumstances set forth in clauses (a)&nbsp;through (h)&nbsp;of Section&nbsp;2
hereof; and (ii)&nbsp;covenants and agrees that, except as otherwise agreed by the
parties, this Guaranty will not be discharged except by complete payment and
performance of the Guarantied Obligations and any other obligations of the
Guarantor contained herein.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If, in the exercise of any of its rights and remedies in accordance
with the provisions of Applicable Law, any of the Guarantied Parties shall
forfeit any of its rights or remedies, including, without limitation, its right
to enter a deficiency judgment against the Borrower or any other Person,
whether because of any Applicable Law pertaining to &#147;election of remedies&#148; or
the like, the Guarantor hereby consents to such action by such Guarantied Party
and waives any claim based upon such action. Any election of remedies which,
by reason of such election, results in the denial or impairment of the right of
such Guarantied Party to seek a deficiency judgment against the Borrower shall
not impair the obligation of the Guarantor to pay the full amount of the
Guarantied Obligations or any other obligation of the Guarantor contained
herein.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Guarantor agrees that notwithstanding the foregoing and without
limiting the generality of the foregoing if, after the occurrence and during
the continuance of an Event of Default, the Guarantied Parties are prevented by
Applicable Law from exercising their respective rights to accelerate the
maturity of the Guarantied Obligations, to collect interest on the Guarantied
Obligations, or to enforce or exercise any other right or remedy with respect
to the Guarantied Obligations, or the Administrative Agent is prevented from
taking any action to realize on any collateral, the Guarantor agrees to pay to
the Administrative Agent for the account of the Guarantied Parties, upon demand
therefor, for application to the Guarantied Obligations, the amount that would
otherwise have been due and payable had such rights and remedies been permitted
to be exercised by the Guarantied Parties.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Guarantor hereby assumes responsibility for keeping itself
informed of the financial condition of the Borrower and of each other Loan
Party, and of all other circumstances bearing upon the risk of nonpayment of
the Guarantied Obligations or any part thereof, that diligent inquiry would
reveal. The Guarantor hereby agrees that the Guarantied Parties shall have no
duty to advise the Guarantor of information known to any of the Guarantied
Parties regarding such condition or any such circumstance. In the event that
any of the Guarantied Parties in its sole discretion undertakes at any time or
from time to time to provide any such information to the Guarantor, such
Guarantied Party shall be under no obligation (i)&nbsp;to undertake any
investigation not a part of its regular business routine, (ii)&nbsp;to disclose any
information which, pursuant to accepted or reasonable banking or commercial
finance practices, such Guarantied Party wishes to maintain as confidential, or
(iii)&nbsp;to make any other or future disclosures of such information or any other
information to the Guarantor.


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<BR>
Form of Parent Guaranty
</DIV>

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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The Guarantor consents and agrees that the Guarantied Parties shall be
under no obligation to marshal any assets in favor of the Guarantor or
otherwise in connection with obtaining payment of any or all of the Guarantied
Obligations from any Person or source.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4. Representations and Warranties. The Guarantor hereby
represents and warrants to the Guarantied Parties that the representations and
warranties set forth in Article&nbsp;VI of the Credit Agreement as they relate to
the Guarantor or to the Loan Documents to which the Guarantor is a party are
true and correct in all material respects in the manner specified in the Credit
Agreement and the Guarantied Parties shall be entitled to rely on each of them
as if they were fully set forth herein.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 5. Amendments, Etc. No amendment or waiver of any provision of
this Guaranty nor consent to any departure by the Guarantor herefrom shall in
any event be effective unless the same shall be in writing, approved by the
Required Lenders (or by all the Lenders where the approval of each Lender is
required under the Credit Agreement) and signed by the Administrative Agent,
and then such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6. Addresses for Notices. All notices and other communications
provided for hereunder shall be effectuated in the manner provided for in
Section&nbsp;11.2 of the Credit Agreement, provided that if a notice or
communication hereunder is sent to the Guarantor, said notice shall be
addressed to the Guarantor, in care of the Borrower at the Borrower&#146;s then
current address (or facsimile number) for notice under the Credit Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 7. No Waiver; Remedies.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;No failure on the part of any Guarantied Party to exercise, and no
delay in exercising, any right hereunder shall operate as a waiver thereof; nor
shall any single or partial exercise of any right hereunder preclude any other
or further exercise thereof or the exercise of any other right. The remedies
herein provided are cumulative and not exclusive of any remedies provided by
Applicable Law or any of the other Loan Documents or Guarantied Swap Contracts.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;No waiver by the Guarantied Parties of any default shall operate as a
waiver of any other default or the same default on a future occasion, and no
action by any of the Guarantied Parties permitted hereunder shall in way affect
or impair any of the rights of the Guarantied Parties or the obligations of the
Guarantor under this Guaranty, under any Guarantied Swap Contract or under any
of the other Loan Documents, except as specifically set forth in any such
waiver. Any determination by a court of competent jurisdiction of the amount
of any principal and/or interest or other amount constituting any of the
Guarantied Obligations shall be conclusive and binding on the Guarantor
irrespective of whether the Guarantor was a party to the suit or action in
which such determination was made provided that the Borrower was so a party.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8. Right of Set-off. Upon the occurrence and during the
continuance of any Event of Default under the Credit Agreement, each of the
Guarantied Parties is hereby authorized at any time and from time to time, to
the fullest extent permitted by Applicable Law, to set-off and apply any and
all deposits (general or special (except trust and escrow accounts), time or
demand, provisional or final) at any time held and other indebtedness at any
time owing by such Guarantied Party to or for the credit or the account of the
Guarantor against any and all of the obligations of the Guarantor now or
hereafter existing under this Guaranty, irrespective of


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Form of Parent Guaranty
</DIV>

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<P align="left" style="font-size: 10pt">whether or not such Guarantied Party shall have made any demand under this
Guaranty and although such obligations may be contingent and unmatured;
provided, however, such Guarantied Party shall promptly notify the Guarantor
and the Borrower after such set-off and the application made by such Guarantied
Party. The rights of each Guarantied Party under this Section&nbsp;8 are in
addition to other rights and remedies (including, without limitation, other
rights of set-off) which such Guarantied Party may have.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9. Continuing Guaranty; Transfer of Revolving Notes. This
Guaranty (a)(i) is a continuing guaranty and shall remain in full force and
effect until the date upon which all of the Guarantied Obligations are paid in
full, the Commitments are terminated and all Letters of Credit have expired
(the &#147;Release Date&#148;) and (ii)&nbsp;binding upon the Guarantor, its permitted
successors and assigns, and (b)&nbsp;inures to the benefit of and be enforceable by
the Guarantied Parties and their respective successors, permitted transferees,
and permitted assigns. Without limiting the generality of the foregoing clause
(b), each of the Guarantied Parties may assign or otherwise transfer any
Revolving Note held by it or the Guarantied Obligations owed to it to any other
Person, and such other Person shall thereupon become vested with all the rights
in respect thereof granted to such Guarantied Party herein or otherwise with
respect to such of the Revolving Notes and the Guarantied Obligations so
transferred or assigned, subject, however, to compliance with the provisions of
Section&nbsp;11.9 of the Credit Agreement in respect of assignments. The Guarantor
may not assign any of its obligations under this Guaranty without first
obtaining the written consent of the Lenders as set forth in the Credit
Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 10. Reimbursement. To the extent that the Guarantor shall be
required hereunder to pay a portion of the Guarantied Obligations exceeding the
greater of (a)&nbsp;the amount of the economic benefit actually received by the
Guarantor from the Loans and the Letters of Credit and (b)&nbsp;the amount the
Guarantor would otherwise have paid if the Guarantor had paid the aggregate
amount of the Guarantied Obligations (excluding the amount thereof repaid by
the Borrower) in the same proportion as the Guarantor&#146;s net worth at the date
enforcement is sought hereunder bears to the aggregate net worth of all the
Guarantors (as defined in the Credit Agreement) at the date enforcement is
sought hereunder, then such Guarantor shall be reimbursed by such other
Guarantors (as defined in the Credit Agreement) for the amount of such excess,
pro rata, based on the respective net worths of such other Guarantors (as
defined in the Credit Agreement) at the date enforcement hereunder is sought.
Notwithstanding anything to the contrary, the Guarantor agrees that the
Guarantied Obligations may at any time and from time to time exceed the amount
of the liability of the Guarantor hereunder without impairing its guaranty
herein or effecting the rights and remedies of the Guarantied Parties
hereunder. This Section&nbsp;10 is intended only to define the relative rights of
the Guarantors (as defined in the Credit Agreement), and nothing set forth in
this Section&nbsp;10 is intended to or shall impair the obligations of the Guarantor
to pay to the Guarantied Parties the Guarantied Obligations as and when the
same shall become due and payable in accordance with the terms hereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 11. Reinstatement. This Guaranty shall remain in full force and
effect and continue to be effective should any petition be filed by or against
any Loan Party for liquidation or reorganization, should any Loan Party become
insolvent or make an assignment for the benefit of creditors or should a
receiver or trustee be appointed for all or any significant part of any Loan
Party&#146;s assets, and shall, to the fullest extent permitted by Applicable Law,
continue to be effective or be reinstated, as the case may be, if at any time
payment and performance of the Guarantied Obligations, or any part thereof, is,
pursuant to Applicable Law, rescinded or reduced


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Form of Parent Guaranty
</DIV>

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<P align="left" style="font-size: 10pt">in amount, or must otherwise be restored or returned by any obligees of
the Guarantied Obligations or such part thereof, whether as a &#147;voidable
preference,&#148; &#147;fraudulent transfer,&#148; or otherwise, all as though such payment or
performance had not been made. In the event that any payment, or any part
thereof, is rescinded, reduced, restored or returned, the Guarantied
Obligations shall, to the fullest extent permitted by law, be reinstated and
deemed reduced only by such amount paid and not so rescinded, reduced, restored
or returned.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 12. GOVERNING LAW.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAW OF THE STATE OF TEXAS APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
ENTIRELY WITHIN SUCH STATE; PROVIDED THAT EACH PARTY SHALL RETAIN ALL RIGHTS
ARISING UNDER FEDERAL LAW.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The parties hereto agree that Chapter&nbsp;346 (other than 346.004) of the
Texas Finance Code (which regulates certain revolving credit accounts and
revolving tri-party accounts) shall not apply to Loans under this Guaranty.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS GUARANTY OR ANY
OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF TEXAS SITTING
IN DALLAS COUNTY, TEXAS OR IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN
DISTRICT OF TEXAS (DALLAS DIVISION), AND BY EXECUTION, DELIVERY AND ACCEPTANCE
OF THIS GUARANTY, THE GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH LENDER
CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE
JURISDICTION OF THOSE COURTS. THE GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH
LENDER IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING
OF VENUE OR BASED ON THE GROUNDS OF <I>FORUM NON CONVENIENS</I>, WHICH IT MAY NOW OR
HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION
IN RESPECT OF ANY LOAN DOCUMENT OR OTHER DOCUMENT RELATED THERETO. THE
GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH LENDER WAIVES PERSONAL SERVICE OF
ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS
PERMITTED BY THE LAW OF SUCH STATE.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 13. Waiver of Jury Trial. THE GUARANTOR, THE ADMINISTRATIVE AGENT
AND EACH LENDER HEREBY (OR BY ACCEPTANCE HEREOF) EXPRESSLY WAIVES ANY RIGHT TO
TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY
LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE
DEALINGS OF ANY ONE OR MORE OF THE GUARANTOR, THE BORROWER, THE ADMINISTRATIVE
AGENT AND EACH LENDER WITH RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS
RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND
WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH OF THE GUARANTOR,
THE ADMINISTRATIVE AGENT AND EACH LENDER HEREBY AGREES AND CONSENTS THAT ANY
SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL


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<BR>
Form of Parent Guaranty
</DIV>

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<P align="left" style="font-size: 10pt">WITHOUT A JURY, AND THAT ANY OF THE GUARANTOR, THE ADMINISTRATIVE AGENT
AND EACH LENDER MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH
ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE GUARANTOR, THE
ADMINISTRATIVE AGENT AND EACH LENDER TO THE WAIVER OF THEIR RIGHT TO TRIAL BY
JURY.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 14. Section&nbsp;Titles. The Section titles contained in this Guaranty
are and shall be without substantive meaning or content of any kind whatsoever
and are not a part of this Guaranty.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 15. Execution in Counterparts. This Guaranty may be executed in
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed to
be an original and all of which taken together shall constitute one and the
same Guaranty.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 16. Miscellaneous. All references herein to the Borrower or to
the Guarantor shall include their respective successors and assigns, including,
without limitation, a receiver, trustee or debtor-in-possession of or for the
Borrower or the Guarantor. All references to the singular shall be deemed to
include the plural where the context so requires.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 17. Subrogation and Subordination.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Subrogation. Notwithstanding any reference to subrogation contained
herein to the contrary, until the Release Date, the Guarantor hereby
irrevocably waives any claim or other rights which it may have or hereafter
acquire against the Borrower that arise from the existence, payment,
performance or enforcement of the Guarantor&#146;s obligations under this Guaranty,
including, without limitation, any right of subrogation, reimbursement,
exoneration, contribution, indemnification, any right to participate in any
claim or remedy of any Lender against the Borrower or any collateral which any
Lender now has or hereafter acquires, whether or not such claim, remedy or
right arises in equity, or under contract, statutes or common law, including
without limitation, the right to take or receive from the Borrower, directly or
indirectly, in cash or other property or by set-off or in any other manner,
payment or security on account of such claim or other rights. If any amount
shall be paid to the Guarantor in violation of the preceding sentence and the
Guarantied Obligations shall not have been paid in full, such amount shall be
deemed to have been paid to such Guarantor for the benefit of, and held in
trust for the benefit of, the Lenders, and shall forthwith be paid to the
Administrative Agent to be credited and applied upon the Guarantied
Obligations, whether matured or unmatured, in accordance with the terms of the
Credit Agreement. The Guarantor acknowledges that it will receive direct and
indirect benefits from the financing arrangements contemplated by the Credit
Agreement and that the waiver set forth in this Section&nbsp;17 is knowingly made in
contemplation of such benefits.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Subordination. With respect to the Guarantor, all debt and other
liabilities of the Borrower or any other Loan Party to the Guarantor (&#147;Loan
Party Debt&#148;) are expressly subordinate and junior to the Guarantied Obligations
and any instruments evidencing the Guarantied Obligations to the extent
provided below.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Until the Release Date, the Guarantor agrees that it will not
request, demand, accept, or receive (by set-off or other manner) any
payment amount, credit or


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Form of Parent Guaranty
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<P align="left" style="margin-left:3%; font-size: 10pt">reduction of all or any part of the amounts owing under the Loan
Party Debt or any security therefor, except as specifically allowed
pursuant to clause (ii)&nbsp;below;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding the provisions of clause (i)&nbsp;above, the
Borrower and each other Loan Party may pay to the Guarantor and the
Guarantor may request, demand, accept and receive and retain from the
Borrower payments, credits or reductions of all or any part of the
amounts owing under the Loan Party Debt or any security therefor on the
Loan Party Debt, provided that the Borrower&#146;s and other Loan Party&#146;s
right to pay and such Guarantor&#146;s right to receive any such amount shall
automatically and be immediately suspended and cease (A)&nbsp;upon the
occurrence and during the continuance of an Event of Default or (B)&nbsp;if,
after taking into account the effect of such payment, an Event of Default
would occur and be continuing. The Guarantor&#146;s right to receive amounts
under this clause (ii) (including any amounts which theretofore may have
been suspended) shall automatically be reinstated at such time as the
Event of Default which was the basis of such suspension has been cured or
waived (provided that no subsequent Event of Default has occurred) or
such earlier date, if any, as the Administrative Agent gives notice to
the Guarantor of reinstatement by the Required Lenders, in the Required
Lenders&#146; sole discretion;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If the Guarantor receives any payment on the Borrower Debt in
violation of this Guaranty, the Guarantor will hold such payment in trust
for the Lenders and will immediately deliver such payment to the
Administrative Agent; and



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) In the event of the commencement or joinder of any suit, action
or proceeding of any type (judicial or otherwise) or proceeding under any
Debtor Relief Law against the Borrower or any other Loan Party (an
&#147;Insolvency Proceeding&#148;) and subject to court orders issued pursuant to
the Bankruptcy Code, the Guarantied Obligations shall first be paid,
discharged and performed in full before any payment or performance is
made upon the Loan Party Debt notwithstanding any other provisions which
may be made in such Insolvency Proceeding. In the event of any
Insolvency Proceeding, the Guarantor will at any time prior to the
Release Date (A)&nbsp;file, at the request of any Guarantied Party, any claim,
proof of claim or similar instrument necessary to enforce the Borrower&#146;s
or such other Loan Party&#146;s obligation to pay the Loan Party Debt, and (B)
hold in trust for and pay to the Guarantied Parties any and all monies,
obligations, property, stock dividends or other assets received in any
such proceeding on account of the Loan Party Debt in order that the
Guarantied Parties may apply such monies or the cash proceeds of such
other assets to the Guarantied Obligations.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 18. Guarantor Insolvency. Should the Guarantor voluntarily seek,
consent to, or acquiesce in the benefits of any Debtor Relief Law or become a
party to or be made the subject of any proceeding provided for by any Debtor
Relief Law (other than as a creditor or claimant) that could suspend or
otherwise adversely affect the rights of any Guarantied Party granted
hereunder, then, the obligations of the Guarantor under this Guaranty shall be,
as between the Guarantor and such Guarantied Party, a fully-matured, due, and
payable obligation of the Guarantor to such Guarantied Party (without regard to
whether there is an Event of Default under the Credit Agreement or whether any
part of the Guarantied Obligations is then due and owing by the Borrower to
such Guarantied Party), payable in full by the Guarantor to such


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Form of Parent Guaranty
</DIV>

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<P align="left" style="font-size: 10pt">Guarantied Party upon demand, which shall be the estimated amount owing in
respect of the contingent claim created hereunder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 19. Rate Provision. It is not the intention of any Guarantied
Party to make an agreement violative of the laws of any applicable jurisdiction
relating to usury. Regardless of any provision in this Guaranty, no Guarantied
Party shall ever be entitled to contract, charge, receive, collect or apply, as
interest on the Guarantied Obligations, any amount in excess of the Maximum
Rate. In no event shall the Guarantor be obligated to pay any amount in excess
of the Maximum Rate. If from any circumstance the Administrative Agent or any
Guarantied Party shall ever receive, collect or apply anything of value deemed
excess interest under Applicable Law, an amount equal to such excess shall be
applied to the reduction of the principal amount of outstanding Loans and L/C
Borrowings, and any remainder shall be promptly refunded to the payor. In
determining whether or not interest paid or payable with respect to the
Guarantied Obligations, under any specified contingency, exceeds the Maximum
Rate, the Guarantor and the Guarantied Parties shall, to the maximum extent
permitted by Applicable Law, (a)&nbsp;characterize any non-principal payment as an
expense, fee or premium rather than as interest, (b)&nbsp;amortize, prorate,
allocate and spread the total amount of interest throughout the full term of
such Guarantied Obligations so that the interest paid on account of such
Guarantied Obligations does not exceed the Maximum Rate and/or (c)&nbsp;allocate
interest between portions of such Guarantied Obligations; provided that if the
Guarantied Obligations are paid and performed in full prior to the end of the
full contemplated term thereof, and if the interest received for the actual
period of existence thereof exceeds the Maximum Rate, the Guarantied Parties
shall refund to the payor the amount of such excess or credit the amount of
such excess against the total principal amount owing, and, in such event, no
Guarantied Party shall be subject to any penalties provided by any laws for
contracting for, charging or receiving interest in excess of the Maximum Rate.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 20. Guarantor&#146;s Covenants. Guarantor covenants to and agrees with
Administrative Agent and Lenders as follows:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;As long as the Guaranteed Obligations or any part thereof is
outstanding or any Lender has any commitment under the Credit Agreement,
Guarantor will comply with all covenants set forth in the Credit Agreement
specifically applicable to Guarantor, the terms of which are incorporated
herein by reference.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Guarantor will not make any payment on account of the purchase,
redemption or other acquisition or retirement of any shares of capital stock,
<I>provided</I>, that notwithstanding the foregoing, for so long as no Default or
Event of Default shall have occurred and be continuing, and no other event or
condition which is reasonably expected to result in a Material Adverse Effect
is in existence, Guarantor shall not be prohibited from repurchasing shares to
be held as treasury shares, <I>provided further </I>that no Default or Event of
Default shall result from, or exist immediately following, any such repurchase.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;There shall be no change of the personnel performing the functions of
Chairman of the Board and President and Chief Executive Officer of Guarantor as
such positions are presently constituted.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Guarantor will not declare, pay or issue any dividends or other
distributions in respect of its ownership interests, or distribute, reserve,
secure or otherwise


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Form of Parent Guaranty
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">commit distributions in respect thereof, unless no Default or Event of
Default shall have occurred and be continuing or would result therefrom.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 21. Severability. Any provision of this Guaranty which is for any
reason prohibited or found or held invalid or unenforceable by any court or
governmental agency shall be ineffective to the extent of such prohibition or
invalidity or unenforceability, without invalidating the remaining provisions
hereof in such jurisdiction or affecting the validity or enforceability of such
provision in any other jurisdiction.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 22. ENTIRE AGREEMENT. THIS GUARANTY AND THE OTHER LOAN DOCUMENTS
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES REGARDING THE SUBJECT MATTER
HEREIN AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS. OR
SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.


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Form of Parent Guaranty
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the Guarantor has caused this Guaranty to be duly
executed and delivered by its duly authorized officer on the date first above
written.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">

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<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">ENCORE WIRE CORPORATION</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
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</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
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</TR>

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</TR>
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</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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</DIV></TD>
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</TR>
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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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Form of Parent Guaranty
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<P align="right" style="font-size: 10pt"><B><I>EXHIBIT C-2</I></B>


<P align="center" style="font-size: 10pt"><B>GUARANTY</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GUARANTY (this &#147;Guaranty&#148;), dated as of August&nbsp;27, 2004, made by each of
the parties listed on the signature pages hereof (collectively, the
&#147;Guarantors&#148;, and each, a &#147;Guarantor&#148;), in favor of the Guarantied Parties
referred to below.


<P align="center" style="font-size: 10pt">W I T N E S S E T H:



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Encore Wire Limited, a Texas limited partnership (the
&#147;Borrower&#148;), has entered into a Credit Agreement, dated as of August&nbsp;27, 2004,
among the Lenders party thereto, and Bank of America, N.A., as the
Administrative Agent and Issuing Bank (hereinafter, the &#147;Administrative Agent&#148;)
for the Lenders, (said Credit Agreement, as it may be amended, supplemented or
otherwise modified from time to time, being the &#147;Credit Agreement&#148;, and
capitalized terms not defined herein but defined therein being used herein as
therein defined); and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, EWC GP Corp. and EWC LP Corp. collectively own all of the
partnership interests in the Borrower, and the Borrower owns all of the capital
stock of EWC Aviation Corp., and the Borrower and EWC Aviation Corp. are
engaged in operations which require financing on a basis in which credit can be
made available from time to time to the Borrower, and the Guarantors will
derive direct and indirect economic benefit from the Loans and Letters of
Credit under the Credit Agreement; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, it is a condition precedent to the obligation of the Lenders to
make Loans and issue or participate in Letters of Credit under the Credit
Agreement that the Guarantors shall have executed and delivered this Guaranty;
and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Lenders, the Administrative Agent, any Lender or Affiliate of
any Lender entering into a Swap Contract (provided that such Lender was a
Lender at the time such Swap Contract was entered into) with the Borrower or
any Affiliate of the Borrower, and the beneficiaries of each indemnification
obligation undertaken by any Loan Party under any Loan Document are herein
referred to as the &#147;Guarantied Parties&#148;;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the premises and to induce the Lenders
to make Loans and the Issuing Bank to issue Letters of Credit, the Guarantors
hereby agree as follows:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1. Guaranty. The Guarantors hereby jointly and severally
unconditionally and irrevocably guarantee the full and prompt payment when due,
whether at stated maturity, by acceleration or otherwise, of, and the
performance of, (a)&nbsp;the Obligations, whether now or hereafter existing and
whether for principal, interest, fees, expenses or otherwise, (b)&nbsp;all Swap
Obligations owed to any Lender or any Affiliate of a Lender (provided at the
time of execution of the Swap Contract related to such Swap Obligations such
Lender is a party to the Credit Agreement), (c)&nbsp;any and all reasonable
out-of-pocket expenses (including, without limitation, reasonable expenses and
reasonable counsel fees and expenses of the Administrative Agent and the
Lenders) incurred by any of the Guarantied Parties in enforcing any rights
under this Guaranty and (d)&nbsp;all present and future amounts that would become
due but for the operation of any provision of Debtor Relief Laws, and all
present and future accrued and unpaid interest,


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Form of Subsidiary Guaranty
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<P align="left" style="font-size: 10pt">including, without limitation, all post-petition interest if the Borrower
or any Guarantor voluntarily or involuntarily becomes subject to any Debtor
Relief Laws (the items set forth in clauses (a), (b), (c)&nbsp;and (d)&nbsp;immediately
above being herein referred to as the &#147;Guarantied Obligations&#148;). Upon failure
of the Borrower to pay any of the Guarantied Obligations when due after the
giving by the Administrative Agent and/or the Lenders of any notice and the
expiration of any applicable cure period in each case provided for in the
Credit Agreement and other Loan Documents (whether at stated maturity, by
acceleration or otherwise), the Guarantors hereby further jointly and severally
agree to promptly pay the same after the Guarantors&#146; receipt of notice from the
Administrative Agent of the Borrower&#146;s failure to pay the same, without any
other demand or notice whatsoever, including without limitation, any notice
having been given to any Guarantor of either the acceptance by the Guarantied
Parties of this Guaranty or the creation or incurrence of any of the Guarantied
Obligations. This Guaranty is an absolute guaranty of payment and performance
of the Guarantied Obligations and not a guaranty of collection, meaning that it
is not necessary for the Guarantied Parties, in order to enforce payment by the
Guarantors, first or contemporaneously to accelerate payment of any of the
Guarantied Obligations, to institute suit or exhaust any rights against any
Loan Party, or to enforce any rights against any Collateral. Notwithstanding
anything herein or in any other Loan Document to the contrary, in any action or
proceeding involving any state corporate law, or any state or federal
bankruptcy, insolvency, reorganization or other law affecting the rights of
creditors generally, if, as a result of applicable law relating to fraudulent
conveyance or fraudulent transfer, including Section&nbsp;548 of Bankruptcy Code or
any applicable provisions of comparable state law (collectively, &#147;Fraudulent
Transfer Laws&#148;), the obligations of any Guarantor under this Section&nbsp;1 would
otherwise, after giving effect to (a)&nbsp;all other liabilities of such Guarantor,
contingent or otherwise, that are relevant under such Fraudulent Transfer Laws
(specifically excluding, however, any liabilities of such Guarantor in respect
of intercompany indebtedness to the Borrower to the extent that such
indebtedness would be discharged in an amount equal to the amount paid by such
Guarantor hereunder) and (b)&nbsp;to the value as assets of such Guarantor (as
determined under the applicable provisions of such Fraudulent Transfer Laws) of
any rights of subrogation, contribution, reimbursement, indemnity or similar
rights held by such Guarantor pursuant to (i)&nbsp;applicable requirements of Law,
(ii)&nbsp;Section&nbsp;10 hereof or (iii)&nbsp;any other contractual obligations providing for
an equitable allocation among such Guarantor and other Subsidiaries or
Affiliates of the Borrower of obligations arising under this Guaranty or other
guaranties of the Guarantied Obligations by such parties, be held or determined
to be void, invalid or unenforceable, or subordinated to the claims of any
other creditors, on account of the amount of its liability under this Section
1, then the amount of such liability shall, without any further action by such
Guarantor, any Lender, the Administrative Agent or any other Person, be
automatically limited and reduced to the highest amount that is valid and
enforceable and not subordinated to the claims of other creditors as determined
in such action or proceeding.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2. Guaranty Absolute. Each Guarantor guarantees that the
Guarantied Obligations will be paid strictly in accordance with the terms of
the Credit Agreement, the Revolving Notes and the other Loan Documents, without
set-off or counterclaim, and regardless of any Applicable Law (as defined
herein) now or hereafter in effect in any jurisdiction affecting any of such
terms or the rights of the Guarantied Parties with respect thereto. For
purposes hereof, &#147;Applicable Law&#148; means (a)&nbsp;in respect of any Person, all
provisions of Laws applicable to such Person, and all orders and decrees of all
courts and determinations of arbitrators applicable to such Person and (b)&nbsp;in
respect of contracts made or performed in the State of Texas,


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Form of Subsidiary Guaranty
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<P align="left" style="font-size: 10pt">&#147;Applicable Law&#148; shall also mean the laws of the United States of America,
including, without limitation in addition to the foregoing, 12 USC Sections&nbsp;85
and 86, as amended to the date hereof and as the same may be amended at any
time and from time to time hereafter, and any other statute of the United
States of America now or at any time hereafter prescribing the maximum rates of
interest on loans and extensions of credit, and the laws of the State of Texas.
The liability of each Guarantor under this Guaranty shall be absolute and
unconditional irrespective of:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any lack of validity or enforceability of any provision of any
other Loan Document or any other agreement or instrument relating to any
Loan Document, or avoidance or subordination of any of the Guarantied
Obligations;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any change in the time, manner or place of payment of, or in any
other term of, or any increase in the amount of, all or any of the
Guarantied Obligations, or any other amendment or waiver of any term of,
or any consent to departure from any requirement of, the Credit
Agreement, the Revolving Notes or any of the other Loan Documents;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any exchange, release or non-perfection of any lien on any
collateral for, or any release of any other Loan Party or amendment or
waiver of any term of any other guaranty of, or any consent to departure
from any requirement of any other guaranty of, all or any of the
Guarantied Obligations;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the absence of any attempt to collect any of the Guarantied
Obligations from the Borrower or from any other Loan Party or any other
action to enforce the same or the election of any remedy by any of the
Guarantied Parties;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any waiver, consent, extension, forbearance or granting of any
indulgence by any of the Guarantied Parties with respect to any provision
of any other Loan Document;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the election by any of the Guarantied Parties in any proceeding
under any Debtor Relief Law;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any borrowing or grant of a security interest by the Borrower,
as debtor-in-possession, under any Debtor Relief Law; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any other circumstance which might otherwise constitute a legal
or equitable discharge or defense of the Borrower or any other Guarantor
other than payment or performance of the Guarantied Obligations.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3. Waiver.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Each Guarantor hereby (i)&nbsp;waives (A)&nbsp;promptness, diligence, and,
except as otherwise provided herein, notice of acceptance and any and all other
notices, except as otherwise expressly provided for in the Loan Documents,
including, without limitation, notice of intent to accelerate and notice of
acceleration, with respect to any of the Guarantied Obligations or this
Guaranty, (B)&nbsp;any requirement that any of the Guarantied Parties protect,
secure, perfect or insure any security interest in or other lien on any
property subject thereto or exhaust any right


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<P align="left" style="font-size: 10pt">or take any action against the Borrower or any other Person or any
collateral, (C)&nbsp;the filing of any claim with a court in the event of
receivership or bankruptcy of the Borrower or any other Person, (D)&nbsp;except as
otherwise provided herein, protest or notice with respect to nonpayment of all
or any of the Guarantied Obligations, (E)&nbsp;the benefit of any statute of
limitation, (F)&nbsp;except as otherwise provided herein, all demands whatsoever
(and any requirement that demand be made on the Borrower or any other Person as
a condition precedent to such Guarantor&#146;s obligations hereunder), (G)&nbsp;all
rights by which any Guarantor might be entitled to require suit on an accrued
right of action in respect of any of the Guarantied Obligations or require suit
against the Borrower or any other Guarantor or Person, whether arising pursuant
to Section&nbsp;34.02 of the Texas Business and Commerce Code, as amended, Section
17.001 of the Texas Civil Practice and Remedies Code, as amended, Rule&nbsp;31 of
the Texas Rules of Civil Procedure, as amended, or otherwise, (H)&nbsp;any defense
based upon an election of remedies by any Guarantied Party, or (I)&nbsp;notice of
any events or circumstances set forth in clauses (a)&nbsp;through (h)&nbsp;of Section&nbsp;2
hereof; and (ii)&nbsp;covenants and agrees that, except as otherwise agreed by the
parties, this Guaranty will not be discharged except by complete payment and
performance of the Guarantied Obligations and any other obligations of such
Guarantor contained herein.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;If, in the exercise of any of its rights and remedies in accordance
with the provisions of Applicable Law, any of the Guarantied Parties shall
forfeit any of its rights or remedies, including, without limitation, its right
to enter a deficiency judgment against the Borrower or any other Person,
whether because of any Applicable Law pertaining to &#147;election of remedies&#148; or
the like, each Guarantor hereby consents to such action by such Guarantied
Party and waives any claim based upon such action. Any election of remedies
which, by reason of such election, results in the denial or impairment of the
right of such Guarantied Party to seek a deficiency judgment against the
Borrower shall not impair the obligation of such Guarantor to pay the full
amount of the Guarantied Obligations or any other obligation of such Guarantor
contained herein.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Each Guarantor agrees that notwithstanding the foregoing and without
limiting the generality of the foregoing if, after the occurrence and during
the continuance of an Event of Default, the Guarantied Parties are prevented by
Applicable Law from exercising their respective rights to accelerate the
maturity of the Guarantied Obligations, to collect interest on the Guarantied
Obligations, or to enforce or exercise any other right or remedy with respect
to the Guarantied Obligations, or the Administrative Agent is prevented from
taking any action to realize on any collateral, such Guarantor agrees to pay to
the Administrative Agent for the account of the Guarantied Parties, upon demand
therefor, for application to the Guarantied Obligations, the amount that would
otherwise have been due and payable had such rights and remedies been permitted
to be exercised by the Guarantied Parties.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Each Guarantor hereby assumes responsibility for keeping itself
informed of the financial condition of the Borrower and of each other Loan
Party, and of all other circumstances bearing upon the risk of nonpayment of
the Guarantied Obligations or any part thereof, that diligent inquiry would
reveal. Each Guarantor hereby agrees that the Guarantied Parties shall have no
duty to advise any Guarantor of information known to any of the Guarantied
Parties regarding such condition or any such circumstance. In the event that
any of the Guarantied Parties in its sole discretion undertakes at any time or
from time to time to provide any such information to any Guarantor, such
Guarantied Party shall be under no obligation (i)&nbsp;to undertake any
investigation not a part of its regular business routine, (ii)&nbsp;to disclose any
information which,


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Form of Subsidiary Guaranty
</DIV>

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<P align="left" style="font-size: 10pt">pursuant to accepted or reasonable banking or commercial finance
practices, such Guarantied Party wishes to maintain as confidential, or (iii)
to make any other or future disclosures of such information or any other
information to such Guarantor.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Each Guarantor consents and agrees that the Guarantied Parties shall
be under no obligation to marshal any assets in favor of any Guarantor or
otherwise in connection with obtaining payment of any or all of the Guarantied
Obligations from any Person or source.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4. Representations and Warranties. Each Guarantor hereby
represents and warrants to the Guarantied Parties that the representations and
warranties set forth in Article&nbsp;VI of the Credit Agreement as they relate to
such Guarantor or to the Loan Documents to which such Guarantor is a party are
true and correct in all material respects in the manner specified in the Credit
Agreement and the Guarantied Parties shall be entitled to rely on each of them
as if they were fully set forth herein.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 5. Amendments, Etc. No amendment or waiver of any provision of
this Guaranty nor consent to any departure by any Guarantor herefrom shall in
any event be effective unless the same shall be in writing, approved by the
Required Lenders (or by all the Lenders where the approval of each Lender is
required under the Credit Agreement) and signed by the Administrative Agent,
and then such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6. Addresses for Notices. All notices and other communications
provided for hereunder shall be effectuated in the manner provided for in
Section&nbsp;11.2 of the Credit Agreement, provided that if a notice or
communication hereunder is sent to a Guarantor, said notice shall be addressed
to such Guarantor, in care of the Borrower at the Borrower&#146;s then current
address (or facsimile number) for notice under the Credit Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 7. No Waiver; Remedies.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;No failure on the part of any Guarantied Party to exercise, and no
delay in exercising, any right hereunder shall operate as a waiver thereof; nor
shall any single or partial exercise of any right hereunder preclude any other
or further exercise thereof or the exercise of any other right. The remedies
herein provided are cumulative and not exclusive of any remedies provided by
Applicable Law or any of the other Loan Documents.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;No waiver by the Guarantied Parties of any default shall operate as a
waiver of any other default or the same default on a future occasion, and no
action by any of the Guarantied Parties permitted hereunder shall in way affect
or impair any of the rights of the Guarantied Parties or the obligations of any
Guarantor under this Guaranty or under any of the other Loan Documents, except
as specifically set forth in any such waiver. Any determination by a court of
competent jurisdiction of the amount of any principal and/or interest or other
amount constituting any of the Guarantied Obligations shall be conclusive and
binding on each Guarantor irrespective of whether such Guarantor was a party to
the suit or action in which such determination was made provided that the
Borrower was so a party.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8. Right of Set-off. Upon the occurrence and during the
continuance of any Event of Default under the Credit Agreement, each of the
Guarantied Parties is hereby authorized at any time and from time to time, to
the fullest extent permitted by Applicable Law,


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Form of Subsidiary Guaranty
</DIV>

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<P align="left" style="font-size: 10pt">to set-off and apply any and all deposits (general or special (except
trust and escrow accounts), time or demand, provisional or final) at any time
held and other indebtedness at any time owing by such Guarantied Party to or
for the credit or the account of each Guarantor against any and all of the
obligations of such Guarantor now or hereafter existing under this Guaranty,
irrespective of whether or not such Guarantied Party shall have made any demand
under this Guaranty and although such obligations may be contingent and
unmatured; provided, however, such Guarantied Party shall promptly notify such
Guarantor and the Borrower after such set-off and the application made by such
Guarantied Party. The rights of each Guarantied Party under this Section&nbsp;8 are
in addition to other rights and remedies (including, without limitation, other
rights of set-off) which such Guarantied Party may have.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9. Continuing Guaranty; Transfer of Revolving Notes. This
Guaranty (a)(i) is a continuing guaranty and shall remain in full force and
effect until the date upon which all of the Guarantied Obligations are paid in
full, the Commitments are terminated and all Letters of Credit have expired
(the &#147;Release Date&#148;) and (ii)&nbsp;binding upon each Guarantor, its permitted
successors and assigns, and (b)&nbsp;inures to the benefit of and be enforceable by
the Guarantied Parties and their respective successors, permitted transferees,
and permitted assigns. Without limiting the generality of the foregoing clause
(b), each of the Guarantied Parties may assign or otherwise transfer any
Revolving Note held by it or the Guarantied Obligations owed to it to any other
Person, and such other Person shall thereupon become vested with all the rights
in respect thereof granted to such Guarantied Party herein or otherwise with
respect to such of the Revolving Notes and the Guarantied Obligations so
transferred or assigned, subject, however, to compliance with the provisions of
Section&nbsp;11.9 of the Credit Agreement in respect of assignments. No Guarantor
may assign any of its obligations under this Guaranty without first obtaining
the written consent of the Lenders as set forth in the Credit Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 10. Reimbursement. To the extent that any Guarantor shall be
required hereunder to pay a portion of the Guarantied Obligations exceeding the
greater of (a)&nbsp;the amount of the economic benefit actually received by such
Guarantor from the Loans and the Letters of Credit and (b)&nbsp;the amount such
Guarantor would otherwise have paid if such Guarantor had paid the aggregate
amount of the Guarantied Obligations (excluding the amount thereof repaid by
the Borrower) in the same proportion as such Guarantor&#146;s net worth at the date
enforcement is sought hereunder bears to the aggregate net worth of all the
Guarantors at the date enforcement is sought hereunder, then such Guarantor
shall be reimbursed by such other Guarantors for the amount of such excess, pro
rata, based on the respective net worths of such other Guarantors at the date
enforcement hereunder is sought. Notwithstanding anything to the contrary,
each Guarantor agrees that the Guarantied Obligations may at any time and from
time to time exceed the amount of the liability of such Guarantor hereunder
without impairing its guaranty herein or effecting the rights and remedies of
the Guarantied Parties hereunder. This Section&nbsp;10 is intended only to define
the relative rights of the Guarantors, and nothing set forth in this Section&nbsp;10
is intended to or shall impair the obligations of the Guarantors, jointly and
severally, to pay to the Guarantied Parties the Guarantied Obligations as and
when the same shall become due and payable in accordance with the terms hereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 11. Reinstatement. This Guaranty shall remain in full force and
effect and continue to be effective should any petition be filed by or against
any Loan Party for liquidation or reorganization, should any Loan Party become
insolvent or make an assignment for the benefit of creditors or should a
receiver or trustee be appointed for all or any significant part of


<P align="center" style="font-size: 10pt">Page - 6
<BR>
Form of Subsidiary Guaranty
</DIV>

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<P align="left" style="font-size: 10pt">any Loan Party&#146;s assets, and shall, to the fullest extent permitted by
Applicable Law, continue to be effective or be reinstated, as the case may be,
if at any time payment and performance of the Guarantied Obligations, or any
part thereof, is, pursuant to Applicable Law, rescinded or reduced in amount,
or must otherwise be restored or returned by any obligees of the Guarantied
Obligations or such part thereof, whether as a &#147;voidable preference,&#148;
&#147;fraudulent transfer,&#148; or otherwise, all as though such payment or performance
had not been made. In the event that any payment, or any part thereof, is
rescinded, reduced, restored or returned, the Guarantied Obligations shall, to
the fullest extent permitted by law, be reinstated and deemed reduced only by
such amount paid and not so rescinded, reduced, restored or returned.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 12. GOVERNING LAW.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAW OF THE STATE OF TEXAS APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
ENTIRELY WITHIN SUCH STATE; PROVIDED THAT EACH PARTY SHALL RETAIN ALL RIGHTS
ARISING UNDER FEDERAL LAW.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The parties hereto agree that Chapter&nbsp;346 (other than 346.004) of the
Texas Finance Code (which regulates certain revolving credit accounts and
revolving tri-party accounts) shall not apply to Loans under this Guaranty.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS GUARANTY OR ANY
OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF TEXAS SITTING
IN DALLAS COUNTY, TEXAS OR IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN
DISTRICT OF TEXAS (DALLAS DIVISION), AND BY EXECUTION, DELIVERY AND ACCEPTANCE
OF THIS GUARANTY, EACH GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH LENDER
CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE
JURISDICTION OF THOSE COURTS. EACH GUARANTOR, THE ADMINISTRATIVE AGENT AND
EACH LENDER IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE
LAYING OF VENUE OR BASED ON THE GROUNDS OF <I>FORUM NON CONVENIENS</I>, WHICH IT MAY
NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH
JURISDICTION IN RESPECT OF ANY LOAN DOCUMENT OR OTHER DOCUMENT RELATED THERETO.
EACH GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH LENDER WAIVES PERSONAL
SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY
OTHER MEANS PERMITTED BY THE LAW OF SUCH STATE.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 13. Waiver of Jury Trial. EACH GUARANTOR, THE ADMINISTRATIVE
AGENT AND EACH LENDER HEREBY (OR BY ACCEPTANCE HEREOF) EXPRESSLY WAIVES ANY
RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING
UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL
TO THE DEALINGS OF ANY ONE OR MORE OF EACH GUARANTOR, THE BORROWER, THE
ADMINISTRATIVE AGENT AND EACH LENDER WITH RESPECT TO ANY LOAN DOCUMENT, OR THE
TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR


<P align="center" style="font-size: 10pt">Page - 7
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Form of Subsidiary Guaranty
</DIV>

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<P align="left" style="font-size: 10pt">OTHERWISE; AND EACH OF THE GUARANTORS, THE ADMINISTRATIVE AGENT AND EACH
LENDER HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE
OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY OF THE
GUARANTORS, THE ADMINISTRATIVE AGENT AND EACH LENDER MAY FILE AN ORIGINAL
COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE
CONSENT OF EACH GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH LENDER TO THE
WAIVER OF THEIR RIGHT TO TRIAL BY JURY.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 14. Section&nbsp;Titles. The Section titles contained in this Guaranty
are and shall be without substantive meaning or content of any kind whatsoever
and are not a part of this Guaranty.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 15. Execution in Counterparts. This Guaranty may be executed in
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed to
be an original and all of which taken together shall constitute one and the
same Guaranty.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 16. Miscellaneous. All references herein to the Borrower or to
any Guarantor shall include their respective successors and assigns, including,
without limitation, a receiver, trustee or debtor-in-possession of or for the
Borrower or such Guarantor. All references to the singular shall be deemed to
include the plural where the context so requires.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 17. Subrogation and Subordination.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Subrogation. Notwithstanding any reference to subrogation contained
herein to the contrary, until the Release Date, each Guarantor hereby
irrevocably waives any claim or other rights which it may have or hereafter
acquire against the Borrower that arise from the existence, payment,
performance or enforcement of such Guarantor&#146;s obligations under this Guaranty,
including, without limitation, any right of subrogation, reimbursement,
exoneration, contribution, indemnification, any right to participate in any
claim or remedy of any Lender against the Borrower or any collateral which any
Lender now has or hereafter acquires, whether or not such claim, remedy or
right arises in equity, or under contract, statutes or common law, including
without limitation, the right to take or receive from the Borrower, directly or
indirectly, in cash or other property or by set-off or in any other manner,
payment or security on account of such claim or other rights. If any amount
shall be paid to any Guarantor in violation of the preceding sentence and the
Guarantied Obligations shall not have been paid in full, such amount shall be
deemed to have been paid to such Guarantor for the benefit of, and held in
trust for the benefit of, the Lenders, and shall forthwith be paid to the
Administrative Agent to be credited and applied upon the Guarantied
Obligations, whether matured or unmatured, in accordance with the terms of the
Credit Agreement. Each Guarantor acknowledges that it will receive direct and
indirect benefits from the financing arrangements contemplated by the Credit
Agreement and that the waiver set forth in this Section&nbsp;17 is knowingly made in
contemplation of such benefits.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Subordination. With respect to each Guarantor, all debt and other
liabilities of the Borrower or any other Loan Party to such Guarantor (&#147;Loan
Party Debt&#148;) are expressly subordinate and junior to the Guarantied Obligations
and any instruments evidencing the Guarantied Obligations to the extent
provided below.


<P align="center" style="font-size: 10pt">Page - 8
<BR>
Form of Subsidiary Guaranty
</DIV>

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<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Until the Release Date, each Guarantor agrees that it will not
request, demand, accept, or receive (by set-off or other manner) any
payment amount, credit or reduction of all or any part of the amounts
owing under the Loan Party Debt or any security therefor, except as
specifically allowed pursuant to clause (ii)&nbsp;below;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding the provisions of clause (i)&nbsp;above, the
Borrower and each other Loan Party may pay to such Guarantor and such
Guarantor may request, demand, accept and receive and retain from the
Borrower payments, credits or reductions of all or any part of the
amounts owing under the Loan Party Debt or any security therefor on the
Loan Party Debt, provided that the Borrower&#146;s and other Loan Party&#146;s
right to pay and such Guarantor&#146;s right to receive any such amount shall
automatically and be immediately suspended and cease (A)&nbsp;upon the
occurrence and during the continuance of an Event of Default or (B)&nbsp;if,
after taking into account the effect of such payment, an Event of Default
would occur and be continuing. Such Guarantor&#146;s right to receive amounts
under this clause (ii) (including any amounts which theretofore may have
been suspended) shall automatically be reinstated at such time as the
Event of Default which was the basis of such suspension has been cured or
waived (provided that no subsequent Event of Default has occurred) or
such earlier date, if any, as the Administrative Agent gives notice to
the Guarantors of reinstatement by the Required Lenders, in the Required
Lenders&#146; sole discretion;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If any Guarantor receives any payment on the Borrower Debt in
violation of this Guaranty, such Guarantor will hold such payment in
trust for the Lenders and will immediately deliver such payment to the
Administrative Agent; and



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) In the event of the commencement or joinder of any suit, action
or proceeding of any type (judicial or otherwise) or proceeding under any
Debtor Relief Law against the Borrower or any other Loan Party (an
&#147;Insolvency Proceeding&#148;) and subject to court orders issued pursuant to
the Bankruptcy Code, the Guarantied Obligations shall first be paid,
discharged and performed in full before any payment or performance is
made upon the Loan Party Debt notwithstanding any other provisions which
may be made in such Insolvency Proceeding. In the event of any
Insolvency Proceeding, each Guarantor will at any time prior to the
Release Date (A)&nbsp;file, at the request of any Guarantied Party, any claim,
proof of claim or similar instrument necessary to enforce the Borrower&#146;s
or such other Loan Party&#146;s obligation to pay the Loan Party Debt, and (B)
hold in trust for and pay to the Guarantied Parties any and all monies,
obligations, property, stock dividends or other assets received in any
such proceeding on account of the Loan Party Debt in order that the
Guarantied Parties may apply such monies or the cash proceeds of such
other assets to the Guarantied Obligations.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 18. Guarantor Insolvency. Should any Guarantor voluntarily seek,
consent to, or acquiesce in the benefits of any Debtor Relief Law or become a
party to or be made the subject of any proceeding provided for by any Debtor
Relief Law (other than as a creditor or claimant) that could suspend or
otherwise adversely affect the rights of any Guarantied Party granted
hereunder, then, the obligations of such Guarantor under this Guaranty shall
be, as between such Guarantor and such Guarantied Party, a fully-matured, due,
and payable obligation of such Guarantor to such Guarantied Party (without
regard to whether there is an Event of Default under the Credit Agreement or
whether any part of the Guarantied Obligations is then


<P align="center" style="font-size: 10pt">Page - 9
<BR>
Form of Subsidiary Guaranty
</DIV>

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<P align="left" style="font-size: 10pt">due and owing by the Borrower to such Guarantied Party), payable in full
by such Guarantor to such Guarantied Party upon demand, which shall be the
estimated amount owing in respect of the contingent claim created hereunder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 19. Rate Provision. It is not the intention of any Guarantied
Party to make an agreement violative of the laws of any applicable jurisdiction
relating to usury. Regardless of any provision in this Guaranty, no Guarantied
Party shall ever be entitled to contract, charge, receive, collect or apply, as
interest on the Guarantied Obligations, any amount in excess of the Maximum
Rate. In no event shall any Guarantor be obligated to pay any amount in excess
of the Maximum Rate. If from any circumstance the Administrative Agent or any
Guarantied Party shall ever receive, collect or apply anything of value deemed
excess interest under Applicable Law, an amount equal to such excess shall be
applied to the reduction of the principal amount of outstanding Revolving
Loans, Swing Line Loans and L/C Borrowings, and any remainder shall be promptly
refunded to the payor. In determining whether or not interest paid or payable
with respect to the Guarantied Obligations, under any specified contingency,
exceeds the Maximum Rate, the Guarantors and the Guarantied Parties shall, to
the maximum extent permitted by Applicable Law, (a)&nbsp;characterize any
non-principal payment as an expense, fee or premium rather than as interest,
(b)&nbsp;amortize, prorate, allocate and spread the total amount of interest
throughout the full term of such Guarantied Obligations so that the interest
paid on account of such Guarantied Obligations does not exceed the Maximum Rate
and/or (c)&nbsp;allocate interest between portions of such Guarantied Obligations;
provided that if the Guarantied Obligations are paid and performed in full
prior to the end of the full contemplated term thereof, and if the interest
received for the actual period of existence thereof exceeds the Maximum Rate,
the Guarantied Parties shall refund to the payor the amount of such excess or
credit the amount of such excess against the total principal amount owing, and,
in such event, no Guarantied Party shall be subject to any penalties provided
by any laws for contracting for, charging or receiving interest in excess of
the Maximum Rate.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 20. Guarantor&#146;s Covenants. Guarantor covenants to and agrees with
Administrative Agent and Lenders that as long as the Guaranteed Obligations or
any part thereof is outstanding or any Lender has any commitment under the
Credit Agreement, Guarantor will comply with all covenants set forth in the
Credit Agreement specifically applicable to Guarantor, the terms of which are
incorporated herein by reference.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 21. Severability. Any provision of this Guaranty which is for any
reason prohibited or found or held invalid or unenforceable by any court or
governmental agency shall be ineffective to the extent of such prohibition or
invalidity or unenforceability, without invalidating the remaining provisions
hereof in such jurisdiction or affecting the validity or enforceability of such
provision in any other jurisdiction.



<P align="center" style="font-size: 10pt">Page - 10
<BR>
Form of Subsidiary Guaranty
</DIV>

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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 22. ENTIRE AGREEMENT. THIS GUARANTY AND THE OTHER LOAN DOCUMENTS
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES REGARDING THE SUBJECT MATTER
HEREIN AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS. OR
SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

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<BR>
Form of Subsidiary Guaranty
</DIV>

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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, each Guarantor has caused this Guaranty to be duly
executed and delivered by its duly authorized officer on the date first above
written.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">

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    <TD width="2%">&nbsp;</TD>
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    <TD width="2%">&nbsp;</TD>
    <TD width="41%">&nbsp;</TD>
</TR>

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<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">EWC GP CORP.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
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    <TD align="left" valign="top">&nbsp;</TD>
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    <TD colspan="3" valign="top" align="left"><HR size="1" noshade>&nbsp;</TD>
</TR>
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</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">EWC LP CORP.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">EWC AVIATION CORP.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>


<!-- End Table Body -->
</TABLE>
</DIV>




<P align="center" style="font-size: 10pt">Page - 12
<BR>
Form of Subsidiary Guaranty
</DIV>


<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="center" style="font-size: 10pt">Schedule&nbsp;6.7



<P align="center" style="font-size: 10pt">Subsidiary Information


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="19%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>State of</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>&nbsp;</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>&nbsp;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Incorporation</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Authorized</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Outstanding</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>&nbsp;</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>/Formation</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Capital</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Capital</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Ownership</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Encore Wire Limited</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Texas
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">N/A
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">N/A
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">99% EWC LP Corp.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>EWC GP Corp.</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Delaware
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1,000 shares of
Common Stock, par
value $.01
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1,000 shares of
Common Stock, par
value $.01
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1% EWC GP Corp.
100% by Encore Wire
Corporation</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>EWC LP Corp.</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Delaware
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1,000 shares of
Common Stock, par
value $.01
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1,000 shares of
Common Stock, par
value $.01
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">100% by Encore Wire<BR>
Corporation</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>EWC Aviation Corp.</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Texas
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">50,000 shares of
Common Stock, par
value $.01
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1,000 share of
Common Stock, par
value $.01
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">100% by Encore Wire<BR>
Corporation</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="center" style="font-size: 10pt">Schedule&nbsp;6.12



<P align="center" style="font-size: 10pt">Pending Litigation



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None.


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt">Schedule&nbsp;6.15



<P align="center" style="font-size: 10pt">Tax Returns or Filings



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None.


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt">Schedule&nbsp;11.2



<P align="center" style="font-size: 10pt">Addresses for Notices



<P align="left" style="font-size: 10pt"><B>Borrower:</B><BR>
<BR>

Encore Wire Limited<BR>
1410 Millwood Road, P.O. Box 1149<BR>
McKinney, Texas 75069-0545<BR>
Telecopy: 972-562-4744<BR>
Telephone: 972-562-9473<BR>
Attention: Frank Bilban


<P align="left" style="font-size: 10pt"><B>Agent:</B>



<P align="left" style="font-size: 10pt">Bank of America, N.A.<BR>
231 S LA SALLE ST, 8th Floor<BR>
CHICAGO IL 60604<BR>
Attn: Rosanne Parsill


<P align="left" style="font-size: 10pt"><B>Issuing Bank:</B><BR>
<BR>

Bank of America, N.A.<BR>
Trade Operations-Los Angeles #22621<BR>
333 S. Beaudry Avenue, 19th Floor<BR>
Mail Code: CA9-703-19-23<BR>
Los Angeles, CA 90017-1466<BR>
Attention: Sandra Leon

<DIV align="left" style="font-size: 10pt; margin-left:10px; text-indent:48px">Vice
President</DIV>
<DIV align="left" style="font-size: 10pt">Telephone: 213.345.5231<BR>
Telecopier: 213.345.6694<BR>
Electronic Mail: Sandra.Leon@bankofamerica.com
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>d19811exv10w2.htm
<DESCRIPTION>NOTE PURCHASE AGREEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>exv10w2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="right" style="font-size: 10pt">Exhibit&nbsp;10.2



<HR size="4" noshade color="#000000" style="margin-top: -5px">
<HR size="1" noshade color="#000000" style="margin-top: -10px">






<P align="center" style="font-size: 10pt">ENCORE WIRE CORPORATION<BR>
ENCORE WIRE LIMITED



<P align="center" style="font-size: 10pt">$45,000,000<BR>
5.27% Senior Notes, Series&nbsp;2004-A,<BR>
due August&nbsp;27, 2011



<P align="center" style="font-size: 10pt"><HR size="1" noshade width="15%" align="center">



<P align="center" style="font-size: 10pt">NOTE PURCHASE AGREEMENT



<P align="center" style="font-size: 10pt"><HR size="1" noshade width="15%" align="center">



<P align="center" style="font-size: 10pt">Dated as of August&nbsp;1, 2004



<P>
<HR size="1" noshade color="#000000" style="margin-top: -2px">
<HR size="4" noshade color="#000000" style="margin-top: -10px">






<P align="right" style="font-size: 10pt">PPN: 29263@ AA 7



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="center" style="font-size: 10pt">TABLE OF CONTENTS


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Section</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Page</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #eeeeee">
    <TD>1.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">AUTHORIZATION OF NOTES</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1.1.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Description of the Notes</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1.2.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Guaranties; Release of Subsidiary Guaranty</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>2.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">SALE AND PURCHASE OF NOTES</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>3.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">CLOSING</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>4.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">CONDITIONS TO CLOSING</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.1.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Representations and Warranties</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.2.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Performance; No Default</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.3.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Compliance Certificates</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.4.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Opinions of Counsel</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.5.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Purchase Permitted By Applicable Law, etc</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.6.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Sale of Other Notes</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.7.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payment of Special Counsel Fees</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.8.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Private Placement Number</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.9.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Changes in Corporate Structure</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.10.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Guaranties</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.11.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Credit Agreement</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.12.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Funding Instructions</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4.13.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Proceedings and Documents</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>5.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">REPRESENTATIONS AND WARRANTIES OF THE COMPANY</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.1.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Organization; Power and Authority</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.2.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Authorization, etc</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.3.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Disclosure</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.4.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Organization and Ownership of Shares of Subsidiaries</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.5.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial Statements</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">7</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.6.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Compliance with Laws, Other Instruments, etc</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">7</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.7.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Governmental Authorizations, etc</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.8.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Litigation; Observance of Statutes and Orders</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">8</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.9.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Taxes</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">9</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.10.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title to Property; Leases</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">9</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.11.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Licenses, Permits, etc</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">9</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.12.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Compliance with ERISA</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.13.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Private Offering by the Company</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">11</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.14.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Use of Proceeds; Margin Regulations</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">11</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.15.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Existing Debt</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">11</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.16.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Foreign Assets Control Regulations, Anti-Terrorism Order, etc</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">12</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.17.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Status under Certain Statutes</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">12</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.18.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Environmental Matters</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">12</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.19.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Solvency of Subsidiary Guarantors</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">13</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">i&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Section</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Page</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD>6.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">REPRESENTATIONS OF THE PURCHASERS</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">13</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6.1.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Purchase for Investment</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">13</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6.2.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Source of Funds</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">13</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>7.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">INFORMATION AS TO THE PARENT AND THE COMPANY</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">15</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">7.1.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial and Business Information</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">15</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">7.2.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Officer&#146;s Certificate</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">18</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">7.3.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Inspection</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">18</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>8.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">PREPAYMENT OF THE NOTES</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">19</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.1.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No Scheduled Prepayments</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">19</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.2.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Optional Prepayments with Make-Whole Amount</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">19</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.3.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Allocation of Partial Prepayments</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">19</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.4.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Maturity; Surrender, etc</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">20</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.5.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Purchase of Notes</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">20</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.6.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Make-Whole Amount</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">20</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>9.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">AFFIRMATIVE COVENANTS</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">22</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">9.1.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Compliance with Law</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">22</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">9.2.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Insurance</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">22</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">9.3.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Maintenance of Properties</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">22</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">9.4.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payment of Taxes</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">22</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">9.5.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Corporate Existence, etc</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">23</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">9.6.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Additional Subsidiary Guarantors</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">23</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">9.7.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ranking of Notes</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">23</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>10.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">NEGATIVE COVENANTS</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">24</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10.1.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Consolidated Debt</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">24</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10.2.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Interest Coverage</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">24</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10.3.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Priority Debt</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">24</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10.4.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Liens.</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">24</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10.5.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Mergers, Consolidations, etc</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">26</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10.6.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Sale of Assets</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">27</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10.7.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Designation of Restricted and Unrestricted Subsidiaries</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">27</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10.8.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Nature of Business</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">28</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10.9.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Transactions with Affiliates</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">28</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>11.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">EVENTS OF DEFAULT</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">29</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>12.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">REMEDIES ON DEFAULT, ETC</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">31</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">12.1.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Acceleration</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">31</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">12.2.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Other Remedies</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">32</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">12.3.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Rescission</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">32</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">12.4.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No Waivers or Election of Remedies, Expenses, etc</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">32</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>13.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">32</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">13.1.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Registration of Notes</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">32</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">ii&nbsp;
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
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    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Section</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Page</B><HR size="1" noshade></TD>
</TR>

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<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">13.2.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Transfer and Exchange of Notes</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">33</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">13.3.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Restriction on Transfer to Competitor</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">33</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">13.4.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Replacement of Notes</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">33</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>14.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">PAYMENTS ON NOTES</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">34</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">14.1.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Place of Payment</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">34</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">14.2.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Home Office Payment</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">34</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>15.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">EXPENSES, ETC</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">35</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">15.1.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Transaction Expenses</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">35</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">15.2.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Survival</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">35</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>16.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">35</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>17.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">AMENDMENT AND WAIVER</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">36</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">17.1.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Requirements</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">36</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">17.2.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Solicitation of Holders of Notes</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">36</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">17.3.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Binding Effect, etc</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">36</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">17.4.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notes held by Company, etc</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">37</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>18.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">NOTICES</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">37</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>19.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">REPRODUCTION OF DOCUMENTS</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">37</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>20.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">CONFIDENTIAL INFORMATION</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">38</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD>21.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">SUBSTITUTION OF PURCHASER</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">39</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD>22.</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">MISCELLANEOUS</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">39</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">22.1.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Successors and Assigns</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">39</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">22.2.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Payments Due on Non-Business Days</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">39</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">22.3.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Severability</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">39</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">22.4.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Construction</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">40</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">22.5.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Counterparts</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">40</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #eeeeee">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">22.6.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Governing Law</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">40</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">22.7.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Limitation on Interest</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">40</TD>
    <TD valign="top">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">iii&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="59%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SCHEDULE A
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Information Relating to Purchasers</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SCHEDULE B
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Defined Terms</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SCHEDULE 5.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Subsidiaries and Ownership of Subsidiary Stock</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SCHEDULE 5.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial Statements</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SCHEDULE 5.14
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Use of Proceeds</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">SCHEDULE 5.15
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Debt</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">EXHIBIT 1.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Series&nbsp;2004-A Senior Note</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">EXHIBIT 1.2(a)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Parent Guaranty</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">EXHIBIT 1.2(b)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Subsidiary Guaranty</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">EXHIBIT 4.4(a)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Opinion of Counsel for the Company</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">EXHIBIT 4.4(b)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&#151;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Form of Opinion of Special Counsel to the Purchasers</TD>
</TR>

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<P align="center" style="font-size: 10pt">iv&nbsp;
</DIV>

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<P align="center" style="font-size: 10pt">ENCORE WIRE CORPORATION<BR>
ENCORE WIRE LIMITED<BR>
1410 Millwood Road<BR>
McKinney, TX 75069<BR>
(972)&nbsp;562-9473<BR>
Fax: (972)&nbsp;562-4744



<P align="center" style="font-size: 10pt">$45,000,000<BR>
5.27% Senior Notes, Series&nbsp;2004-A,<BR>
due August&nbsp;27, 2011



<P align="right" style="font-size: 10pt">Dated as of August&nbsp;1, 2004



<P align="left" style="font-size: 10pt">TO EACH OF THE PURCHASERS LISTED IN



<DIV align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THE ATTACHED SCHEDULE A:
</DIV>

<P align="left" style="font-size: 10pt">Ladies and Gentlemen:



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ENCORE WIRE LIMITED, a Texas limited partnership (the &#147;Company&#148;), and
ENCORE WIRE CORPORATION, a Delaware corporation (the &#147;Parent&#148;), agree with you
as follows:


<P align="left" style="font-size: 10pt"><B>1. AUTHORIZATION OF NOTES.</B>



<P align="left" style="font-size: 10pt"><B>1.1. Description of the Notes.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has authorized the issue and sale of $45,000,000 aggregate
principal amount of its 5.27% Senior Notes, Series&nbsp;2004-A, due August&nbsp;27, 2011
(the &#147;Notes,&#148; such term to include any Notes issued in substitution therefor
pursuant to Section&nbsp;13 of this Agreement). The Notes shall be substantially in
the form set out in Exhibit&nbsp;1.1, with such changes therefrom, if any, as may be
approved by you, the Other Purchasers and the Company. Certain capitalized
terms used in this Agreement are defined in Schedule&nbsp;B; references to a
&#147;Schedule&#148; or an &#147;Exhibit&#148; are, unless otherwise specified, to a Schedule or an
Exhibit attached to this Agreement.


<P align="left" style="font-size: 10pt"><B>1.2. Guaranties; Release of Subsidiary Guaranty.</B>




<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Guaranties. The Notes will be guaranteed (i)&nbsp;by the Parent
pursuant to a guaranty in substantially the form of Exhibit&nbsp;1.2(a) (the
&#147;Parent Guaranty&#148;) and (ii)&nbsp;by the Subsidiary Guarantors pursuant to a
guaranty in substantially the form of Exhibit&nbsp;1.2(b) (the &#147;Subsidiary
Guaranty,&#148; and, together with the Parent Guaranty, the &#147;Guaranties&#148;).


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Release of Subsidiary Guaranty. Each holder of a Note agrees to
release and discharge a Subsidiary Guarantor from the Subsidiary Guaranty
upon written request of the Company, provided that (i)&nbsp;such Subsidiary
has been, or concurrently with the release by the holders of Notes, will
be released and discharged as guarantor under and in respect of the
Credit Agreement and any other Senior Debt; (ii)&nbsp;such release and
discharge is not part of a plan of financing that contemplates such
Subsidiary Guarantor guaranteeing any other Debt of the Company or
becoming a borrower under the Credit Agreement; (iii)&nbsp;no Default or Event
of Default exists or will exist immediately following such release and
discharge; (iv)&nbsp;if any fee or other consideration is paid or given to any
holder of Debt in connection with such release, other than the repayment
of all or a portion of such Debt, each holder of a Note receives
equivalent consideration on a pro rata basis; and (v)&nbsp;at the time of such
written request, the Company delivers to each holder of Notes a
certificate of a Responsible Officer certifying the matters set forth in
clauses (i)&nbsp;through (iv).


<P align="left" style="font-size: 10pt"><B>2. SALE AND PURCHASE OF NOTES.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the terms and conditions of this Agreement, the Company will
issue and sell to you and each of the other purchasers named in Schedule&nbsp;A (the
&#147;Other Purchasers&#148;), and you and the Other Purchasers will purchase from the
Company, at the Closing provided for in Section&nbsp;3, Notes in the principal
amount and series specified opposite your names in Schedule&nbsp;A at the purchase
price of 100% of the principal amount thereof. Your obligation hereunder and
the obligations of the Other Purchasers are several and not joint obligations
and you shall have no liability to any Person for the performance or
non-performance by any Other Purchaser hereunder.


<P align="left" style="font-size: 10pt"><B>3. CLOSING.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The sale and purchase of the Notes to be purchased by you and the Other
Purchasers shall occur at the offices of Gardner, Carton &#038; Douglas LLP, Suite
3700, 191 North Wacker Drive, Chicago, Illinois 60606 at 9:00 a.m., Chicago
time, at a closing on August&nbsp;27, 2004 (the &#147;Closing&#148;) or on such other Business
Day thereafter, not later than August&nbsp;31, 2004, as may be agreed upon by the
Company and the purchasers that are scheduled to purchase Notes at such
Closing. At the Closing, the Company will deliver to you the Notes to be
purchased by you in the form of a single Note (or such greater number of Notes
in denominations of at least $100,000 as you may request) dated the date of
Closing and registered in your name (or in the name of your nominee), against
delivery by you to the Company or its order of immediately available funds in
the amount of the purchase price therefor by wire transfer of immediately
available funds for the account of the Company to account number 4779592667 at
Bank of America, N.A., 901 Main Street, 67th Floor, Dallas TX, ABA No.&nbsp;111 0000
25. If at the Closing the Company fails to tender such Notes to you as
provided above in this Section&nbsp;3, or any of the conditions specified in Section
4 shall not have been fulfilled to your satisfaction, you shall, at your
election, be relieved of all further obligations under this Agreement, without
thereby waiving any rights you may have by reason of such failure or such
nonfulfillment.


<P align="center" style="font-size: 10pt">2
</DIV>

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<P align="left" style="font-size: 10pt"><B>4. CONDITIONS TO CLOSING.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your obligation to purchase and pay for the Notes to be sold to you at the
Closing is subject to the fulfillment to your satisfaction, prior to or at the
Closing, of the following conditions:


<P align="left" style="font-size: 10pt"><B>4.1. Representations and Warranties.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The representations and warranties of the Parent and the Company in this
Agreement shall be correct when made and at the time of the Closing.


<P align="left" style="font-size: 10pt"><B>4.2. Performance; No Default.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Parent and the Company shall have performed and complied with all
agreements and conditions contained in this Agreement required to be performed
or complied with by them prior to or at the Closing and after giving effect to
the issue and sale of the Notes (and the application of the proceeds thereof as
contemplated by Schedule&nbsp;5.14) no Default or Event of Default shall have
occurred and be continuing. Neither the Parent nor any Subsidiary, including
the Company, shall have entered into any transaction since the date of the
Memorandum that would have been prohibited by Sections&nbsp;10, had such Section
applied since such date.


<P align="left" style="font-size: 10pt"><B>4.3. Compliance Certificates.</B>




<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Officer&#146;s Certificate. The Parent and the Company each shall
have delivered to you an Officer&#146;s Certificate, dated the date of such
Closing, certifying that the conditions specified in Sections&nbsp;4.1, 4.2
and 4.9 have been fulfilled.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Secretary&#146;s Certificate. The Parent, the Company and each
Subsidiary Guarantor shall have delivered to you a certificate certifying
as to the resolutions attached thereto and other corporate proceedings
relating to the authorization, execution and delivery of the Notes and
the Agreement.


<P align="left" style="font-size: 10pt"><B>4.4. Opinions of Counsel.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You shall have received opinions in form and substance reasonably
satisfactory to you, dated the date of the Closing (a)&nbsp;from Thompson &#038; Knight
LLP, counsel for the Parent, the Company and the Subsidiary Guarantors,
covering the matters set forth in Exhibit&nbsp;4.4(a) and covering such other
matters incident to the transactions contemplated hereby as you or your counsel
may reasonably request (and the Parent and the Company instruct their counsel
to deliver such opinion to you) and (b)&nbsp;from Gardner Carton &#038; Douglas LLP, your
special counsel in connection with such transactions, substantially in the form
set forth in Exhibit&nbsp;4.4(b) and covering such other matters incident to such
transactions as you may reasonably request.


<P align="center" style="font-size: 10pt">3
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<P align="left" style="font-size: 10pt"><B>4.5. Purchase Permitted By Applicable Law, etc.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On the date of the Closing your purchase of Notes shall (i)&nbsp;be permitted
by the laws and regulations of each jurisdiction to which you are subject,
without recourse to provisions (such as section 1405(a)(8) of the New York
Insurance Law) permitting limited investments by insurance companies without
restriction as to the character of the particular investment, (ii)&nbsp;not violate
any applicable law or regulation (including Regulation&nbsp;U, T or X of the Board
of Governors of the Federal Reserve System) and (iii)&nbsp;not subject you to any
tax, penalty or liability under or pursuant to any applicable law or
regulation, which law or regulation was not in effect on the date hereof. If
requested by you, you shall have received an Officer&#146;s Certificate certifying
as to such matters of fact as you may reasonably specify to enable you to
determine whether such purchase is so permitted.


<P align="left" style="font-size: 10pt"><B>4.6. Sale of Other Notes.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contemporaneously with the Closing the Company shall sell to the Other
Purchasers and the Other Purchasers shall purchase the Notes to be purchased by
them at the Closing as specified in Schedule&nbsp;A.


<P align="left" style="font-size: 10pt"><B>4.7. Payment of Special Counsel Fees.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Without limiting the provisions of Section&nbsp;15.1, the Company shall have
paid on or before the Closing the fees, charges and disbursements of your
special counsel referred to in Section&nbsp;4.4, to the extent reflected in a
reasonably detailed statement of such counsel rendered to the Company at least
one Business Day prior to the Closing.


<P align="left" style="font-size: 10pt"><B>4.8. Private Placement Number.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A Private Placement Number issued by Standard &#038; Poor&#146;s CUSIP Service
Bureau (in cooperation with the Securities Valuation Office of the National
Association of Insurance Commissioners) shall have been obtained by Gardner
Carton &#038; Douglas LLP for the Notes.


<P align="left" style="font-size: 10pt"><B>4.9. Changes in Corporate Structure.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither the Parent nor the Company shall have changed its jurisdiction of
incorporation or been a party to any merger or consolidation and shall not have
succeeded to all or any substantial part of the liabilities of any other
entity, at any time following the date of the most recent financial statements
referred to in Schedule&nbsp;5.5.


<P align="left" style="font-size: 10pt"><B>4.10. Guaranties.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Parent shall have executed and delivered the Parent Guaranty and each
Subsidiary Guarantor shall have executed and delivered the Subsidiary Guaranty.


<P align="center" style="font-size: 10pt">4
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<P align="left" style="font-size: 10pt"><B>4.11. Credit Agreement.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You and your special counsel shall have been provided with a copy of the
executed Credit Agreement by the Company or the Parent.


<P align="left" style="font-size: 10pt"><B>4.12. Funding Instructions.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At least three Business Days prior to the date of the Closing, each
Purchaser shall have received written instructions signed by a Responsible
Officer on letterhead of the Company confirming the information specified in
Section&nbsp;3 including (i)&nbsp;the name and address of the transferee bank, (ii)&nbsp;such
transferee bank&#146;s ABA number and (iii)&nbsp;the account name and number into which
the purchase price for the Notes is to be deposited.


<P align="left" style="font-size: 10pt"><B>4.13. Proceedings and Documents.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All corporate and other proceedings in connection with the transactions
contemplated by this Agreement and all documents and instruments incident to
such transactions shall be reasonably satisfactory to you and your special
counsel, and you and your special counsel shall have received all such
counterpart originals or certified or other copies of such documents as you or
they may reasonably request.


<P align="left" style="font-size: 10pt"><B>5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the Company and the Parent represents and warrants to you that:


<P align="left" style="font-size: 10pt"><B>5.1. Organization; Power and Authority.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the Company and the Parent is a limited partnership or corporation
duly organized, validly existing and in good standing under the laws of its
jurisdiction of organization, and is duly qualified as a foreign limited
partnership or corporation and is in good standing in each jurisdiction in
which such qualification is required by law, other than those jurisdictions as
to which the failure to be so qualified or in good standing could not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect. Each of the Company and the Parent has the limited partnership
or corporate power and authority to own or hold under lease the properties it
purports to own or hold under lease, to transact the business it transacts and
proposes to transact, to execute and deliver this Agreement, the Parent
Guaranty (in the case of the Parent) and the Notes (in the case of the Company)
and to perform the provisions hereof and thereof.


<P align="left" style="font-size: 10pt"><B>5.2. Authorization, etc.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement and the Notes have been duly authorized by all necessary
limited partnership action on the part of the Company, and this Agreement
constitutes, and upon execution and delivery thereof each Note will constitute,
a legal, valid and binding obligation of the Company enforceable against the
Company in accordance with its terms, except as such enforceability may be
limited by (i)&nbsp;applicable bankruptcy, insolvency, reorganization,


<P align="center" style="font-size: 10pt">5
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<P align="left" style="font-size: 10pt">moratorium or other similar laws affecting the enforcement of creditors&#146; rights
generally and (ii)&nbsp;general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Guaranties have been duly authorized by all necessary corporate action
on the part of the Parent or each Subsidiary Guarantor, as the case may be, and
upon execution and delivery thereof will constitute the legal, valid and
binding obligation of the Parent and each Subsidiary Guarantor, enforceable
against the Parent or each Subsidiary Guarantor, as the case may be, in
accordance with their respective terms, except as such enforceability may be
limited by (i)&nbsp;applicable bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium or other similar laws affecting the enforcement of
creditors&#146; rights generally and (ii)&nbsp;general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at
law).


<P align="left" style="font-size: 10pt"><B>5.3. Disclosure.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Parent and the Company, through their agent, Banc of America
Securities LLC, have delivered to you and each Other Purchaser a copy of a
Private Placement Memorandum, dated July&nbsp;2004 (the &#147;Memorandum&#148;), relating to
the transactions contemplated hereby. The Memorandum fairly describes, in all
material respects, the general nature of the business and principal properties
of the Parent and its Subsidiaries, including the Company. This Agreement, the
Memorandum, the documents, certificates or other writings delivered to you by
or on behalf of the Company in connection with the transactions contemplated
hereby and the financial statements listed in Schedule&nbsp;5.5, taken as a whole,
do not contain any untrue statement of a material fact or omit to state any
material fact necessary to make the statements therein not misleading in light
of the circumstances under which they were made. Except as disclosed in the
Memorandum, or in one of the documents, certificates or other writings
identified therein, or in the financial statements listed in Schedule&nbsp;5.5,
since December&nbsp;31, 2003, there has been no change in the financial condition,
operations, business or properties of the Parent or any Subsidiary, including
the Company, except changes that individually or in the aggregate could not
reasonably be expected to have a Material Adverse Effect. There is no fact
known to the Parent or the Company that could reasonably be expected to have a
Material Adverse Effect that has not been set forth herein or in the Memorandum
or in the other documents, certificates and other writings delivered to you by
or on behalf of the Parent or the Company specifically for use in connection
with the transactions contemplated hereby.


<P align="left" style="font-size: 10pt"><B>5.4. Organization and Ownership of Shares of Subsidiaries.</B>




<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Schedule&nbsp;5.4 contains (except as noted therein) complete and
correct lists of (i)&nbsp;the Parent&#146;s Subsidiaries, showing, as to each
Subsidiary, the correct name thereof, the jurisdiction of its
organization and the percentage of shares of each class of its capital
stock or similar equity interests outstanding owned by the Parent and
each other Subsidiary, including the Company, (ii)&nbsp;the Parent&#146;s
Affiliates, other than Subsidiaries, and (iii)&nbsp;the Parent&#146;s and the
Company&#146;s directors and senior officers.


<P align="center" style="font-size: 10pt">6
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<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All of the outstanding shares of capital stock or similar equity
interests of each Subsidiary shown in Schedule&nbsp;5.4 as being owned by the
Parent and its Subsidiaries, including the Company, have been validly
issued, are fully paid and nonassessable and are owned by the Parent or
another Subsidiary, including the Company, free and clear of any Lien
(except as otherwise disclosed in Schedule&nbsp;5.4).



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Subsidiary identified in Schedule&nbsp;5.4 is a corporation or
other legal entity duly organized, validly existing and in good standing
under the laws of its jurisdiction of organization, and is duly qualified
as a foreign corporation or other legal entity and is in good standing in
each jurisdiction in which such qualification is required by law, other
than those jurisdictions as to which the failure to be so qualified or in
good standing could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. Each such Subsidiary has the
corporate or other power and authority to own or hold under lease the
properties it purports to own or hold under lease and to transact the
business it transacts and proposes to transact.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No Subsidiary is a party to, or otherwise subject to any legal
restriction or any agreement (other than this Agreement, the agreements
listed on Schedule&nbsp;5.4 and customary limitations imposed by corporate,
partnership or limited liability company law statutes) restricting the
ability of such Subsidiary to pay dividends out of profits or make any
other similar distributions of profits to the Company or any of its
Subsidiaries that owns outstanding shares of capital stock or similar
equity interests of such Subsidiary.


<P align="left" style="font-size: 10pt"><B>5.5. Financial Statements.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Parent has delivered to you and each Other Purchaser copies of the
consolidated financial statements of the Parent and its Subsidiaries, including
the Company, listed on Schedule&nbsp;5.5. All of said financial statements
(including in each case the related schedules and notes) fairly present in all
material respects the consolidated financial position of the Parent and its
Subsidiaries, including the Company, as of the respective dates specified in
such Schedule and the consolidated results of their operations and cash flows
for the respective periods so specified and have been prepared in accordance
with GAAP consistently applied throughout the periods involved except as set
forth in the notes thereto (subject, in the case of any interim financial
statements, to normal year-end adjustments and to the absence of footnotes).


<P align="left" style="font-size: 10pt"><B>5.6. Compliance with Laws, Other Instruments, etc.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The execution, delivery and performance by the Company and the Parent of
this Agreement and by the Company of the Notes will not (i)&nbsp;contravene, result
in any breach of, or constitute a default under, or result in the creation of
any Lien in respect of any property of the Parent or any Subsidiary, including
the Company, under, any indenture, mortgage, deed of trust, loan, purchase or
credit agreement, lease, corporate charter or by-laws, or any other Material
agreement or instrument to which the Parent or any Subsidiary, including the
Company, is bound or by which any of their respective properties may be bound
or affected, (ii)&nbsp;conflict with or result in a breach of any of the terms,
conditions or provisions of any order, judgment, decree, or


<P align="center" style="font-size: 10pt">7
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<P align="left" style="font-size: 10pt">ruling of any court, arbitrator or Governmental Authority applicable to the
Parent or any Subsidiary, including the Company, or (iii)&nbsp;violate any provision
of any statute or other rule or regulation of any Governmental Authority
applicable to the Parent or any Subsidiary, including the Company.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The execution, delivery and performance by each of the Parent and each
Subsidiary Guarantor of the Guaranty to which it is a party will not (i)
contravene, result in any breach of, or constitute a default under, or result
in the creation of any Lien in respect of any property of the Parent or such
Subsidiary Guarantor under, any agreement, or corporate charter or by-laws, to
which the Parent or such Subsidiary Guarantor is bound or by which the Parent
or such Subsidiary Guarantor or any of their properties may be bound or
affected, (ii)&nbsp;conflict with or result in a breach of any of the terms,
conditions or provisions of any order, judgment, decree, or ruling of any
court, arbitrator or Governmental Authority applicable to the Parent or such
Subsidiary Guarantor or (iii)&nbsp;violate any provision of any statute or other
rule or regulation of any Governmental Authority applicable to the Parent or
such Subsidiary Guarantor.


<P align="left" style="font-size: 10pt"><B>5.7. Governmental Authorizations, etc.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No consent, approval or authorization of, or registration, filing or
declaration with, any Governmental Authority is required in connection with the
execution, delivery or performance by the Company of this Agreement or the
Notes or the execution, delivery or performance by the Parent of this Agreement
or the Parent Guaranty or by each Subsidiary Guarantor of the Subsidiary
Guaranty.


<P align="left" style="font-size: 10pt"><B>5.8. Litigation; Observance of Statutes and Orders.</B>




<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) There are no actions, suits or proceedings pending or, to the
knowledge of the Parent or the Company, threatened against or affecting
the Parent or any Subsidiary, including the Company, or any property of
the Parent or any Subsidiary, including the Company, in any court or
before any arbitrator of any kind or before or by any Governmental
Authority that, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Neither the Parent nor any Subsidiary, including the Company, is
in default under any term of any agreement or instrument to which it is a
party or by which it is bound, or any order, judgment, decree or ruling
of any court, arbitrator or Governmental Authority or is in violation of
any applicable law, ordinance, rule or regulation (including
Environmental Laws and the USA Patriot Act) of any Governmental
Authority, which default or violation, individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect.


<P align="left" style="font-size: 10pt"><B>5.9. Taxes.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Parent and its Subsidiaries, including the Company, have filed all tax
returns that are required to have been filed in any jurisdiction, and have paid
all taxes shown to be due and payable on such returns and all other taxes and
assessments levied upon them or their


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<P align="left" style="font-size: 10pt">properties, assets, income or franchises, to the extent such taxes and
assessments have become due and payable and before they have become delinquent,
except for any taxes and assessments (i)&nbsp;the amount of which is not
individually or in the aggregate Material or (ii)&nbsp;the amount, applicability or
validity of which is currently being contested in good faith by appropriate
proceedings and with respect to which the Parent or a Subsidiary, as the case
may be, has established adequate reserves in accordance with GAAP. Neither the
Parent nor the Company knows of any basis for any other tax or assessment that
could reasonably be expected to have a Material Adverse Effect. The charges,
accruals and reserves on the books of the Parent and its Subsidiaries,
including the Company, in respect of Federal, state or other taxes for all
fiscal periods are, in the good faith judgment of the Parent, adequate. The
federal income tax liabilities of the Parent and its Subsidiaries, including
the Company, have been determined by the Internal Revenue Service and paid for
all fiscal years up to and including the fiscal year ended December&nbsp;31, 2001.



<P align="left" style="font-size: 10pt"><B>5.10. Title to Property; Leases.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Parent and its Subsidiaries, including the Company, have good and
defensible title to their respective Material properties, including all such
properties reflected in the most recent audited balance sheet referred to in
Section&nbsp;5.5 or acquired by the Company or any Subsidiary after said date
(except as sold or otherwise disposed of in the ordinary course of business),
in each case free and clear of Liens prohibited by this Agreement. All leases
that individually or in the aggregate are Material are valid and subsisting and
are in full force and effect in all material respects.


<P align="left" style="font-size: 10pt"><B>5.11. Licenses, Permits, etc.</B>




<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Parent and its Subsidiaries, including the Company, own or
possess all licenses, permits, franchises, authorizations, patents,
copyrights, service marks, trademarks and trade names, or rights thereto
necessary for the conduct of their businesses without known conflict with
the rights of others;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the knowledge of the Parent and the Company, no product of
the Parent or any Subsidiary, including the Company, infringes any
license, permit, franchise, authorization, patent, copyright, service
mark, trademark, trade name or other right owned by any other Person; and



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to the knowledge of the Parent, there is no violation by any
Person of any right of the Parent or any of its Subsidiaries, including
the Company, with respect to any patent, copyright, service mark,
trademark, trade name or other right owned or used by the Parent or any
of its Subsidiaries, including the Company;


<P align="left" style="font-size: 10pt">except, in each instance, for the lack of ownership or possession, conflicts or
violations that, individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect.



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<P align="left" style="font-size: 10pt"><B>5.12. Compliance with ERISA.</B>




<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Parent and each ERISA Affiliate, including the Company, have
operated and administered each Plan in compliance with all applicable
laws except for such instances of noncompliance as have not resulted in
and could not reasonably be expected to result in a Material Adverse
Effect. Neither the Parent nor any ERISA Affiliate, including the
Company, has incurred any liability pursuant to Title I or IV of ERISA or
the penalty or excise tax provisions of the Code relating to employee
benefit plans (as defined in Section&nbsp;3 of ERISA), and no event,
transaction or condition has occurred or exists that could reasonably be
expected to result in the incurrence of any such liability by the Parent
or any ERISA Affiliate, including the Company, or in the imposition of
any Lien on any of the rights, properties or assets of the Parent or any
ERISA Affiliate, including the Company, in either case pursuant to Title
I or IV of ERISA or to such penalty or excise tax provisions or to
Section&nbsp;401(a)(29) or 412 of the Code, other than such liabilities or
Liens as could not be individually or in the aggregate Material.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The present value of the aggregate benefit liabilities under
each of the Plans (other than Multiemployer Plans), determined as of the
end of such Plan&#146;s most recently ended plan year on the basis of the
actuarial assumptions specified for funding purposes in such Plan&#146;s most
recent actuarial valuation report, did not exceed the aggregate current
value of the assets of such Plan allocable to such benefit liabilities.
The term &#147;benefit liabilities&#148; has the meaning specified in section 4001
of ERISA and the terms &#147;current value&#148; and &#147;present value&#148; have the
meaning specified in section 3 of ERISA.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Parent and its ERISA Affiliates, including the Company, have
not incurred withdrawal liabilities (and are not subject to contingent
withdrawal liabilities) under section 4201 or 4204 of ERISA in respect of
Multiemployer Plans that individually or in the aggregate are Material.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The expected postretirement benefit obligation (determined as of
the last day of the Parent&#146;s most recently ended fiscal year in
accordance with Financial Accounting Standards Board Statement No.&nbsp;106,
without regard to liabilities attributable to continuation coverage
mandated by section 4980B of the Code) of the Parent and its ERISA
Affiliates, including the Company, is not Material.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The execution and delivery of this Agreement and the issuance
and sale of the Notes hereunder will not involve any transaction that is
subject to the prohibitions of section 406 of ERISA or in connection with
which a tax could be imposed pursuant to section 4975(c)(1)(A)-(D) of the
Code. The representation by the Parent and the Company in the first
sentence of this Section&nbsp;5.12(e) is made in reliance upon and subject to
the accuracy of your representation in Section&nbsp;6.2 as to the sources of
the funds used to pay the purchase price of the Notes to be purchased by
you.


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<P align="left" style="font-size: 10pt"><B>5.13. Private Offering by the Company.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None of the Parent, the Company or anyone acting on their behalf has
offered the Notes or any similar securities for sale to, or solicited any offer
to buy any of the same from, or otherwise approached or negotiated in respect
thereof with, any Person other than you, the Other Purchasers and not more than
two other Institutional Investors, each of which has been offered the Notes at
a private sale for investment. None of the Parent, the Company or anyone
authorized to act on their behalf has taken, or will take, any action that
would subject the issuance or sale of the Notes to the registration
requirements of Section&nbsp;5 of the Securities Act.


<P align="left" style="font-size: 10pt"><B>5.14. Use of Proceeds; Margin Regulations.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company will apply the proceeds of the sale of the Notes to repay Debt
as set forth in Schedule&nbsp;5.14 and for general corporate purposes. No part of
the proceeds from the sale of the Notes will be used, directly or indirectly,
for the purpose of buying or carrying any margin stock within the meaning of
Regulation&nbsp;U of the Board of Governors of the Federal Reserve System (12 CFR
221), or for the purpose of buying or carrying or trading in any securities
under such circumstances as to involve the Company in a violation of Regulation
X of said Board (12 CFR 224) or to involve any broker or dealer in a violation
of Regulation&nbsp;T of said Board (12 CFR 220). Margin stock does not constitute
more than 5% of the value of the consolidated assets of the Company and its
Subsidiaries and the Company does not have any present intention that margin
stock will constitute more than 5% of the value of such assets. As used in
this Section, the terms &#147;margin stock&#148; and &#147;purpose of buying or carrying&#148;
shall have the meanings assigned to them in said Regulation&nbsp;U.


<P align="left" style="font-size: 10pt"><B>5.15. Existing Debt.</B>




<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as described therein, Schedule&nbsp;5.15 sets forth a complete
and correct list of all outstanding Debt of the Parent and its
Subsidiaries, including the Company, as of June&nbsp;30, 2004, since which
date there has been no Material change in the amounts, interest rates,
sinking funds, installment payments or maturities of the Debt of the
Company or its Subsidiaries. Neither the Parent nor any Subsidiary,
including the Company, is in default and no waiver of default is
currently in effect, in the payment of any principal or interest on any
Debt of the Parent or such Subsidiary, including the Company, and no
event or condition exists with respect to any Debt of the Parent or any
Subsidiary, including the Company, that would permit (or that with notice
or the lapse of time, or both, could permit) one or more Persons to cause
such Debt to become due and payable before its stated maturity or before
its regularly scheduled dates of payment.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as disclosed in Schedule&nbsp;5.15, neither the Parent nor any
Subsidiary, including the Company, has agreed or consented to cause or
permit in the future (upon the happening of a contingency or otherwise)
any of its property, whether now owned or hereafter acquired, to be
subject to a Lien not permitted by Section&nbsp;10.4.


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<P align="left" style="font-size: 10pt"><B>5.16. Foreign Assets Control Regulations, Anti-Terrorism Order, etc.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither the sale of the Notes by the Company hereunder nor its use of the
proceeds thereof will violate (a)&nbsp;the Trading with the Enemy Act, as amended,
(b)&nbsp;any of the foreign assets control regulations of the United States Treasury
Department (31 CFR, Subtitle B, Chapter&nbsp;V, as amended) or any enabling
legislation or executive order relating thereto, (c)&nbsp;the Anti-Terrorism Order
or (d)&nbsp;the United States Foreign Corrupt Practices Act of 1997, as amended.
Without limiting the foregoing, neither Company nor any Subsidiary (i)&nbsp;is a
blocked person described in the Specially Designated Nationals and Blocked
Persons List of the Office of Foreign Assets Control or in Section&nbsp;1 of the
Anti-Terrorism Order or (ii)&nbsp;engages in any dealings or transactions, or is
otherwise associated, with any such person.


<P align="left" style="font-size: 10pt"><B>5.17. Status under Certain Statutes.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither the Parent nor any Subsidiary, including the Company, is subject
to regulation under the Investment Company Act of 1940, as amended, the Public
Utility Holding Company Act of 1935, as amended, the Interstate Commerce Act,
as amended by the ICC Termination Act, as amended, or the Federal Power Act, as
amended.


<P align="left" style="font-size: 10pt"><B>5.18. Environmental Matters.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither the Parent nor any Subsidiary, including the Company, has
knowledge of any claim or has received any notice of any claim, and no
proceeding has been instituted raising any claim against the Parent or any of
its Subsidiaries, including the Company, or any of their respective real
properties now or formerly owned, leased or operated by any of them or other
assets, alleging any damage to the environment or violation of any
Environmental Laws, except, in each case, such as could not reasonably be
expected to result in a Material Adverse Effect. Except as otherwise disclosed
to you in writing,



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) neither the Parent nor any Subsidiary, including the Company,
has knowledge of any facts which could give rise to any claim, public or
private, of violation of Environmental Laws or damage to the environment
emanating from, occurring on or in any way related to real properties now
or formerly owned, leased or operated by any of them or to other assets
or their use, except, in each case, such as could not reasonably be
expected to result in a Material Adverse Effect;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) neither the Parent nor any Subsidiary, including the Company,
has stored any Hazardous Materials on real properties now or formerly
owned, leased or operated by any of them and has not disposed of any
Hazardous Materials in a manner contrary to any Environmental Laws in
each case in any manner that could reasonably be expected to result in a
Material Adverse Effect; and



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all buildings on all real properties now owned, leased or
operated by the Parent or any of its Subsidiaries, including the Company,
are in compliance with applicable Environmental Laws, except where
failure to comply could not reasonably be expected to result in a
Material Adverse Effect.


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<P align="left" style="font-size: 10pt"><B>5.19. Solvency of Subsidiary Guarantors.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After giving effect to the transactions contemplated herein and after
giving due consideration to any rights of contribution (i)&nbsp;each Subsidiary
Guarantor has received fair consideration and reasonably equivalent value for
the incurrence of its obligations under the Subsidiary Guaranty, (ii)&nbsp;the fair
value of the assets of each Subsidiary Guarantor (both at fair valuation and at
present fair saleable value) exceeds its liabilities, (iii)&nbsp;each Subsidiary
Guarantor is able to and expects to be able to pay its debts as they mature,
and (iv)&nbsp;each Subsidiary Guarantor has capital sufficient to carry on its
business as conducted and as proposed to be conducted.


<P align="left" style="font-size: 10pt"><B>6. REPRESENTATIONS OF THE PURCHASERS.</B>



<P align="left" style="font-size: 10pt"><B>6.1. Purchase for Investment.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You represent that you are purchasing the Notes for your own account or
for one or more separate accounts maintained by you or for the account of one
or more pension or trust funds and not with a view to the distribution thereof,
provided that the disposition of your or their property shall at all times be
within your or their control. You understand that the Notes have not been
registered under the Securities Act and may be resold only if registered
pursuant to the provisions of the Securities Act or if an exemption from
registration is available, except under circumstances where neither such
registration nor such an exemption is required by law, and that the Company is
not required to register the Notes. You represent that you are an &#147;accredited
investor&#148; within the meaning of subparagraph (a)(1), (2), (3)&nbsp;or (7)&nbsp;of Rule
501 of Regulation&nbsp;D under the Securities Act.


<P align="left" style="font-size: 10pt"><B>6.2. Source of Funds.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You represent that at least one of the following statements is an accurate
representation as to each source of funds (a &#147;Source&#148;) to be used by you to pay
the purchase price of the Notes to be purchased by you hereunder:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Source is an &#147;insurance company general account&#148; (as the
term is defined in the United States Department of Labor&#146;s Prohibited
Transaction Exemption (&#147;PTE&#148;) 95-60) in respect of which the reserves and
liabilities (as defined by the annual statement for life insurance
companies approved by the National Association of Insurance Commissioners
(the &#147;NAIC Annual Statement&#148;)) for the general account contract(s) held
by or on behalf of any employee benefit plan together with the amount of
the reserves and liabilities for the general account contract(s) held by
or on behalf of any other employee benefit plans maintained by the same
employer (or affiliate thereof as defined in PTE 95-60) or by the same
employee organization in the general account do not exceed 10% of the
total reserves and liabilities of the general account (exclusive of
separate account liabilities) plus surplus as set forth in the NAIC
Annual Statement filed with such Purchaser&#146;s state of domicile; or


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<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Source is a separate account that is maintained solely in
connection with such Purchaser&#146;s fixed contractual obligations under
which the amounts payable, or credited, to any employee benefit plan (or
its related trust) that has any interest in such separate account (or to
any participant or beneficiary of such plan (including any annuitant))
are not affected in any manner by the investment performance of the
separate account; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Source is either (i)&nbsp;an insurance company pooled separate
account, within the meaning of PTE 90-1 (issued January&nbsp;29, 1990), or
(ii)&nbsp;a bank collective investment fund, within the meaning of PTE 91-38
(issued August&nbsp;12, 1991) and, except as you have disclosed to the
Obligors in writing pursuant to this paragraph (c), no employee benefit
plan or group of plans maintained by the same employer or employee
organization beneficially owns more than 10% of all assets allocated to
such pooled separate account or collective investment fund; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Source constitutes assets of an &#147;investment fund&#148; (within
the meaning of Part&nbsp;V of PTE 84-14 (the &#147;QPAM Exemption&#148;)) managed by a
&#147;qualified professional asset manager&#148; or &#147;QPAM&#148; (within the meaning of
Part&nbsp;V of the QPAM Exemption), no employee benefit plan&#146;s assets that are
included in such investment fund, when combined with the assets of all
other employee benefit plans established or maintained by the same
employer or by an affiliate (within the meaning of Section&nbsp;V(c)(1) of the
QPAM Exemption) of such employer or by the same employee organization and
managed by such QPAM, exceed 20% of the total client assets managed by
such QPAM, the conditions of Part&nbsp;I(c) and (g)&nbsp;of the QPAM Exemption are
satisfied, neither the QPAM nor a person controlling or controlled by the
QPAM (applying the definition of &#147;control&#148; in Section&nbsp;V(e) of the QPAM
Exemption) owns a 5% or more interest in any Obligor and (i)&nbsp;the identity
of such QPAM and (ii)&nbsp;the names of all employee benefit plans whose
assets are included in such investment fund have been disclosed to the
Obligors in writing pursuant to this clause (d); or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Source constitutes assets of a &#147;plan(s)&#148; (within the meaning
of Section&nbsp;IV of PTE 96-23 (the &#147;INHAM Exemption&#148;)) managed by an
&#147;in-house asset manager&#148; or &#147;INHAM&#148; (within the meaning of Part&nbsp;IV of the
INHAM exemption), the conditions of Part&nbsp;I(a), (g)&nbsp;and (h)&nbsp;of the INHAM
Exemption are satisfied, neither the INHAM nor a person controlling or
controlled by the INHAM (applying the definition of &#147;control&#148; in Section
IV(h) of the INHAM Exemption) owns a 5% or more interest in any Obligor
and (i)&nbsp;the identity of such INHAM and (ii)&nbsp;the name(s) of the employee
benefit plan(s) whose assets constitute the Source have been disclosed to
the Obligors in writing pursuant to this clause (e); or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Source is a governmental plan; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the Source is one or more employee benefit plans, or a separate
account or trust fund comprised of one or more employee benefit plans,
each of which has been identified to the Obligors in writing pursuant to
this paragraph (g); or


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<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the Source does not include assets of any employee benefit plan,
other than a plan exempt from the coverage of ERISA.


<P align="left" style="font-size: 10pt">As used in this Section&nbsp;6.2, the terms &#147;employee benefit plan&#148;, &#147;governmental
plan&#148; and &#147;separate account&#148; shall have the respective meanings assigned to
such terms in section 3 of ERISA.



<P align="left" style="font-size: 10pt"><B>7. INFORMATION AS TO THE PARENT AND THE COMPANY.</B>



<P align="left" style="font-size: 10pt"><B>7.1. Financial and Business Information.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Parent will deliver to each holder of Notes that is an Institutional Investor:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Quarterly Statements &#151; within 60&nbsp;days (or such other shorter
period within which Quarterly Reports on Form 10-Q are required to be
timely filed with the Securities and Exchange Commission, including any
extension permitted by Rule&nbsp;12b-25 of the Exchange Act) after the end of
each quarterly fiscal period in each fiscal year of the Parent (other
than the last quarterly fiscal period of each such fiscal year),
duplicate copies of,



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a consolidated balance sheet of the Parent and its
Subsidiaries, including the Company, as at the end of such quarter,



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) consolidated statements of income and shareholders&#146;
equity of the Parent and its Subsidiaries, including the Company,
for such quarter and (in the case of the second and third quarters)
for the portion of the fiscal year ending with such quarter, and



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) consolidated statements of cash flows of the Parent and
its Subsidiaries, including the Company, for such quarter or (in
the case of the second and third quarters) for the portion of the
fiscal year ending with such quarter,



<P align="left" style="margin-left:3%; font-size: 10pt">setting forth in each case in comparative form the figures for the
corresponding periods in the previous fiscal year, all in reasonable
detail, prepared in accordance with GAAP applicable to quarterly
financial statements generally, and certified by a Senior Financial
Officer as fairly presenting, in all material respects, the financial
position of the companies being reported on and their results of
operations and cash flows, subject to changes resulting from year-end
adjustments, provided that delivery within the time period specified
above of copies of the Parent&#146;s Quarterly Report on Form 10-Q prepared in
compliance with the requirements therefor and filed with the Securities
and Exchange Commission shall be deemed to satisfy the requirements of
this Section&nbsp;7.1(a);



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Annual Statements &#151; within 105&nbsp;days (or such other shorter
period within which Annual Reports on Form 10-K are required to be timely
filed with the Securities and Exchange Commission, including any
extension permitted by Rule&nbsp;12b-25 of the Exchange Act) after the end of
each fiscal year of the Parent, duplicate copies of,


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<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a consolidated balance sheet of the Parent and its
Subsidiaries, including the Company, as at the end of such year,
and



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) consolidated statements of income, shareholders&#146; equity
and cash flows of the Parent and its Subsidiaries, including the
Company, for such year,



<P align="left" style="margin-left:3%; font-size: 10pt">setting forth in each case in comparative form the figures for the
previous fiscal year, all in reasonable detail, prepared in accordance
with GAAP, and accompanied by an opinion thereon of independent certified
public accountants of recognized regional or national standing, which
opinion shall state that such financial statements present fairly, in all
material respects, the financial position of the companies being reported
upon and their results of operations and cash flows and have been
prepared in conformity with GAAP, and that the examination of such
accountants in connection with such financial statements has been made in
accordance with generally accepted auditing standards, and that such
audit provides a reasonable basis for such opinion in the circumstances;
provided that the delivery within the time period specified above of the
Parent&#146;s Annual Report on Form 10-K for such fiscal year (together with
the Parent&#146;s annual report to shareholders, if any, prepared pursuant to
Rule&nbsp;14a-3 under the Exchange Act) prepared in accordance with the
requirements therefor and filed with the Securities and Exchange
Commission shall be deemed to satisfy the requirements of this Section
(b);



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Unrestricted Subsidiaries &#151; if, at the time of delivery of any
financial statements pursuant to Section&nbsp;7.1(a) or (b), Unrestricted
Subsidiaries account for more than 10% of (i)&nbsp;the consolidated total
assets of the Parent and its Subsidiaries, including the Company,
reflected in the consolidated balance sheet included in such financial
statements or (ii)&nbsp;the consolidated revenues of the Parent and its
Subsidiaries, including the Company, reflected in the consolidated
statement of income included in such financial statements, an unaudited
balance sheet for all Unrestricted Subsidiaries taken as whole as at the
end of the fiscal period included in such financial statements and the
related unaudited statements of income, stockholders&#146; equity and cash
flows for such Unrestricted Subsidiaries for such period, together with
consolidating statements reflecting all eliminations or adjustments
necessary to reconcile such group financial statements to the
consolidated financial statements of the Parent and its Subsidiaries,
including the Company, shall be delivered together with the financial
statements required pursuant to Sections&nbsp;7.1(a) and (b);



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) SEC and Other Reports &#151; promptly upon their becoming available,
one copy of (i)&nbsp;each financial statement, report, notice or proxy
statement sent by the Parent or any Subsidiary, including the Company, to
public securities holders generally, and (ii)&nbsp;each regular or periodic
report, each registration statement that shall have become effective
(without exhibits except as expressly requested by such holder), and each
final prospectus and all amendments thereto filed by the Parent or any
Subsidiary, including the Company, with the Securities and Exchange
Commission and of all press releases and other statements made available
generally by the Company or any Subsidiary to the public concerning
developments that are Material;


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<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notice of Default or Event of Default &#151; promptly, and in any
event within five Business Days after a Responsible Officer becoming
aware of the existence of any Default or Event of Default, a written
notice specifying the nature and period of existence thereof and what
action the Parent or the Company is taking or proposes to take with
respect thereto;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) ERISA Matters &#151; promptly, and in any event within five Business
Days after a Responsible Officer becoming aware of any of the following,
a written notice setting forth the nature thereof and the action, if any,
that the Parent or an ERISA Affiliate, including the Company, proposes to
take with respect thereto:



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) with respect to any Plan, any reportable event, as defined
in section 4043(b) of ERISA and the regulations thereunder, for
which notice thereof has not been waived pursuant to such
regulations as in effect on the date hereof; or



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the taking by the PBGC of steps to institute, or the
threatening by the PBGC of the institution of, proceedings under
section 4042 of ERISA for the termination of, or the appointment of
a trustee to administer, any Plan, or the receipt by the Parent or
any ERISA Affiliate of a notice from a Multiemployer Plan that such
action has been taken by the PBGC with respect to such
Multiemployer Plan; or



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any event, transaction or condition that could result in
the incurrence of any liability by the Parent or an ERISA
Affiliate, including the Company, pursuant to Title I or IV of
ERISA or the penalty or excise tax provisions of the Code relating
to employee benefit plans, or in the imposition of any Lien on any
of the rights, properties or assets of the Parent or an ERISA
Affiliate, including the Company, pursuant to Title I or IV of
ERISA or such penalty or excise tax provisions, if such liability
or Lien, taken together with any other such liabilities or Liens
then existing, could reasonably be expected to have a Material
Adverse Effect;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Notices from Governmental Authority &#151; promptly, and in any
event within 30&nbsp;days of receipt thereof, copies of any notice to the
Company or any Subsidiary from any Federal or state Governmental
Authority relating to any order, ruling, statute or other law or
regulation that could reasonably be expected to have a Material Adverse
Effect; and



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Requested Information &#151; with reasonable promptness, such other
data and information relating to the business, operations, affairs,
financial condition, assets or properties of the Parent or any of its
Subsidiaries, including the Company, or relating to the ability of the
Parent or the Company to perform its obligations hereunder and under the
Notes as from time to time may be reasonably requested by any such holder
of Notes.


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<P align="left" style="font-size: 10pt"><B>7.2. Officer&#146;s Certificate.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each set of financial statements delivered to a holder of Notes pursuant
to Section&nbsp;7.1(a) or Section&nbsp;7.1(b) shall be accompanied by a certificate of a
Senior Financial Officer setting forth:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Covenant Compliance &#151; the information (including detailed
calculations) required in order to establish whether the Parent was in
compliance with the requirements of Section&nbsp;10.1 through Section&nbsp;10.9,
inclusive, during the quarterly or annual period covered by the
statements then being furnished (including with respect to each such
Section, where applicable, the calculations of the maximum or minimum
amount, ratio or percentage, as the case may be, permissible under the
terms of such Sections, and the calculation of the amount, ratio or
percentage then in existence); and



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Event of Default &#151; a statement that such officer has reviewed
the relevant terms hereof and has made, or caused to be made, under his
or her supervision, a review of the transactions and conditions of the
Parent and its Subsidiaries, including the Company, from the beginning of
the quarterly or annual period covered by the statements then being
furnished to the date of the certificate and that such review shall not
have disclosed the existence during such period of any condition or event
that constitutes a Default or an Event of Default or, if any such
condition or event existed or exists (including any such event or
condition resulting from the failure of the Parent or any Subsidiary,
including the Company, to comply with any Environmental Law), specifying
the nature and period of existence thereof and what action the Parent or
the Company shall have taken or proposes to take with respect thereto.


<P align="left" style="font-size: 10pt"><B>7.3. Inspection.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Parent and the Company will permit the representatives of each holder
of Notes that is an Institutional Investor:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No Default &#151; if no Default or Event of Default then exists, at
the expense of such holder and upon reasonable prior notice to the Parent
or the Company, to visit the principal executive office of the Parent or
the Company, to discuss the affairs, finances and accounts of the Parent
and its Subsidiaries, including the Company, with the Parent&#146;s and the
Company&#146;s officers, and (with the consent of the Parent and the Company,
which consent will not be unreasonably withheld) its independent public
accountants, and (with the consent of the Parent and the Company which
consent will not be unreasonably withheld), to visit the other offices
and properties of the Parent and each Subsidiary, including the Company,
all at such reasonable times and as often as may be reasonably requested
in writing; and



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Default &#151; if a Default or Event of Default then exists, at the
expense of the Company, to visit and inspect any of the offices or
properties of the Parent or any Subsidiary, including the Company, to
examine all their respective books of account, records, reports and other
papers, to make copies and extracts therefrom, and to discuss


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<P align="left" style="margin-left:3%; font-size: 10pt">their respective affairs, finances, and accounts with their
respective officers and independent public accountants (and by this
provision the Parent and the Company authorize said accountants to
discuss the affairs, finances and accounts of the Parent and its
Subsidiaries, including the Company), all at such times and as often as
may be requested.


<P align="left" style="font-size: 10pt"><B>8. PREPAYMENT OF THE NOTES.</B>



<P align="left" style="font-size: 10pt"><B>8.1. No Scheduled Prepayments.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No regularly scheduled prepayments are due on the Notes prior to their
stated maturity.


<P align="left" style="font-size: 10pt"><B>8.2. Optional Prepayments with Make-Whole Amount.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company may, at its option, upon notice as provided below, prepay at
any time all, or from time to time any part of, the Notes in an amount not less
than $1,000,000 in the aggregate in the case of a partial prepayment, at 100%
of the principal amount so prepaid, plus the Make-Whole Amount determined for
the prepayment date with respect to such principal amount. The Company will
give each holder of Notes written notice of each optional prepayment under this
Section&nbsp;8.2 not less than 30&nbsp;days and not more than 60&nbsp;days prior to the date
fixed for such prepayment. Each such notice shall specify such date, the
aggregate principal amount of the Notes to be prepaid on such date, the
principal amount of each Note held by such holder to be prepaid (determined in
accordance with Section&nbsp;8.3), and the interest to be paid on the prepayment
date with respect to such principal amount being prepaid, and shall be
accompanied by a certificate of a Senior Financial Officer as to the estimated
Make-Whole Amount due in connection with such prepayment (calculated as if the
date of such notice were the date of the prepayment), setting forth the details
of such computation. Two Business Days prior to such prepayment, the Company
shall deliver to each holder of Notes a certificate of a Senior Financial
Officer specifying the calculation of such Make-Whole Amount as of the
specified prepayment date.


<P align="left" style="font-size: 10pt"><B>8.3. Allocation of Partial Prepayments.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the case of each partial prepayment of the Notes, the principal amount
of the Notes to be prepaid shall be allocated among all of the Notes at the
time outstanding in proportion, as nearly as practicable, to the respective
unpaid principal amounts thereof not theretofore called for prepayment.


<P align="left" style="font-size: 10pt"><B>8.4. Maturity; Surrender, etc.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the case of each prepayment of Notes pursuant to this Section&nbsp;8, the
principal amount of each Note to be prepaid shall mature and become due and
payable on the date fixed for such prepayment, together with interest on such
principal amount accrued to such date and the applicable Make-Whole Amount, if
any. From and after such date, unless the Company shall fail to pay such
principal amount when so due and payable, together with the interest and Make-


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<P align="left" style="font-size: 10pt">Whole Amount, if any, as aforesaid, interest on such principal amount shall
cease to accrue. Any Note paid or prepaid in full shall be surrendered to the
Company and canceled and shall not be reissued, and no Note shall be issued in
lieu of any prepaid principal amount of any Note.



<P align="left" style="font-size: 10pt"><B>8.5. Purchase of Notes.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither the Parent nor the Company will, and will not permit any Affiliate
to, purchase, redeem, prepay or otherwise acquire, directly or indirectly, any
of the outstanding Notes except (a)&nbsp;upon the payment or prepayment of the Notes
in accordance with the terms of this Agreement and the Notes or (b)&nbsp;pursuant to
an offer to purchase made by the Company or an Affiliate pro rata to the
holders of all Notes at the time outstanding upon the same terms and
conditions. Any such offer shall provide each holder with sufficient
information to enable it to make an informed decision with respect to such
offer, and shall remain open for at least 30 Business Days. If the holders of
more than 25% of the principal amount of the Notes then outstanding accept such
offer, the Company shall promptly notify the remaining holders of such fact and
the expiration date for the acceptance by holders of Notes of such offer shall
be extended by the number of days necessary to give each such remaining holder
at least ten Business Days from its receipt of such notice to accept such
offer. The Company will promptly cancel all Notes acquired by it or any
Affiliate pursuant to any payment, prepayment or purchase of Notes pursuant to
any provision of this Agreement and no Notes may be issued in substitution or
exchange for any such Notes.


<P align="left" style="font-size: 10pt"><B>8.6. Make-Whole Amount.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term <B>&#147;Make-Whole Amount&#148; </B>means, with respect to any Note, an amount
equal to the excess, if any, of the Discounted Value of the Remaining Scheduled
Payments with respect to the Called Principal of such Note over the amount of
such Called Principal, provided that the Make-Whole Amount may in no event be
less than zero. For the purposes of determining the Make-Whole Amount, the
following terms have the following meanings:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Called Principal&#148; </B>means, with respect to any Note, the principal of
such Note that is to be prepaid pursuant to Section&nbsp;8.2 or has become or
is declared to be immediately due and payable pursuant to Section&nbsp;12.1,
as the context requires.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Discounted Value&#148; </B>means, with respect to the Called Principal of
any Note, the amount obtained by discounting all Remaining Scheduled
Payments with respect to such Called Principal from their respective
scheduled due dates to the Settlement Date with respect to such Called
Principal, in accordance with accepted financial practice and at a
discount factor (applied on the same periodic basis as that on which
interest on the Notes is payable) equal to the Reinvestment Yield with
respect to such Called Principal.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Reinvestment Yield&#148; </B>means, with respect to the Called Principal of
any Note, .50% over the yield to maturity implied by (i)&nbsp;the yields
reported, as of 10:00&nbsp;A.M. (New York City time) on the second Business
Day preceding the Settlement Date with respect to such Called Principal,
on the display designated as the &#147;PX1 Screen&#148; on the Bloomberg Financial
Market Service (or such other display as may replace the PX1 Screen on
Bloomberg Financial Market Service) for actively traded U.S. Treasury


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<P align="left" style="margin-left:3%; font-size: 10pt">securities having a maturity equal to the Remaining Average Life of such
Called Principal as of such Settlement Date, or (ii)&nbsp;if such yields are
not reported as of such time or the yields reported as of such time are
not ascertainable, the Treasury Constant Maturity Series&nbsp;Yields reported,
for the latest day for which such yields have been so reported as of the
second Business Day preceding the Settlement Date with respect to such
Called Principal, in Federal Reserve Statistical Release H.15 (519) (or
any comparable successor publication) for actively traded U.S. Treasury
securities having a constant maturity equal to the Remaining Average Life
of such Called Principal as of such Settlement Date. Such implied yield
will be determined, if necessary, by (a)&nbsp;converting U.S. Treasury bill
quotations to bond-equivalent yields in accordance with accepted
financial practice and (b)&nbsp;interpolating linearly between (1)&nbsp;the
actively traded U.S. Treasury security with the maturity closest to and
greater than the Remaining Average Life and (2)&nbsp;the actively traded U.S.
Treasury security with the maturity closest to and less than the
Remaining Average Life.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Remaining Average Life&#148; </B>means, with respect to any Called
Principal, the number of years (calculated to the nearest one-twelfth
year) obtained by dividing (i)&nbsp;such Called Principal into (ii)&nbsp;the sum of
the products obtained by multiplying (a)&nbsp;the principal component of each
Remaining Scheduled Payment with respect to such Called Principal by (b)
the number of years (calculated to the nearest one-twelfth year) that
will elapse between the Settlement Date with respect to such Called
Principal and the scheduled due date of such Remaining Scheduled Payment.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Remaining Scheduled Payments&#148; </B>means, with respect to the Called
Principal of any Note, all payments of such Called Principal and
interest thereon that could be due after the Settlement Date with respect
to such Called Principal if no payment of such Called Principal were made
prior to its scheduled due date, provided that if such Settlement Date is
not a date on which interest payments are due to be made under the terms
of the Notes, then the amount of the next succeeding scheduled interest
payment will be reduced by the amount of interest accrued to such
Settlement Date and required to be paid on such Settlement Date pursuant
to Section&nbsp;8.2 or 12.1.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Settlement Date&#148; </B>means, with respect to the Called Principal of any
Note, the date on which such Called Principal is to be prepaid pursuant
to Section&nbsp;8.2 or has become or is declared to be immediately due and
payable pursuant to Section&nbsp;12.1, as the context requires.


<P align="left" style="font-size: 10pt"><B>9. AFFIRMATIVE COVENANTS.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the Parent and the Company covenants that so long as any of the
Notes are outstanding:


<P align="left" style="font-size: 10pt"><B>9.1. Compliance with Law.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Parent and the Company will, and will cause each other Subsidiary to,
comply with all laws, ordinances or governmental rules or regulations to which
each of them is


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<P align="left" style="font-size: 10pt">subject, including, Environmental Laws, and will obtain and maintain in effect
all licenses, certificates, permits, franchises and other governmental
authorizations necessary to the ownership of their respective properties or to
the conduct of their respective businesses, in each case to the extent
necessary to ensure that non-compliance with such laws, ordinances or
governmental rules or regulations or failures to obtain or maintain in effect
such licenses, certificates, permits, franchises and other governmental
authorizations could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.



<P align="left" style="font-size: 10pt"><B>9.2. Insurance.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Parent and the Company will, and will cause each Restricted Subsidiary
to, maintain, with financially sound and reputable insurers, insurance with
respect to their respective properties and businesses against such casualties
and contingencies, of such types, on such terms and in such amounts (including
deductibles, co-insurance and self-insurance, if customary reserves are
maintained with respect thereto) as is customary in the case of entities of
established reputations engaged in the same or a similar business and similarly
situated.


<P align="left" style="font-size: 10pt"><B>9.3. Maintenance of Properties.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Parent and the Company will, and will cause each Restricted Subsidiary
to, maintain and keep, or cause to be maintained and kept, their respective
properties in good repair, working order and condition (other than ordinary
wear and tear), so that the business carried on in connection therewith may be
properly conducted at all times, provided that this Section shall not prevent
the Parent or any Subsidiary, including the Company, from discontinuing the
operation and the maintenance of any of its properties if such discontinuance
is desirable in the conduct of its business and the Parent has concluded that
such discontinuance could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.


<P align="left" style="font-size: 10pt"><B>9.4. Payment of Taxes.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Parent and the Company will, and will cause each other Subsidiary to,
file all tax returns required to be filed in any jurisdiction and to pay and
discharge all taxes shown to be due and payable on such returns and all other
taxes, assessments, governmental charges, or levies imposed on them or any of
their properties, assets, income or franchises, to the extent such taxes and
assessments have become due and payable and before they have become delinquent,
and all claims for which sums have become due and payable that have or might
become a Lien on properties or assets of the Parent or any Subsidiary,
including the Company, provided that neither the Parent nor any Subsidiary,
including the Company, need pay any such tax or assessment or claims if (i)&nbsp;the
amount, applicability or validity thereof is contested by the Parent or such
Subsidiary on a timely basis in good faith and in appropriate proceedings, and
the Parent or a Subsidiary, including the Company, has established adequate
reserves therefor in accordance with GAAP on the books of the Parent or such
Subsidiary or (ii)&nbsp;the nonpayment of all such taxes and assessments in the
aggregate could not reasonably be expected to have a Material Adverse Effect.


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<P align="left" style="font-size: 10pt"><B>9.5. Corporate Existence, etc.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the Parent and the Company will at all times preserve and keep in
full force and effect its corporate existence. Subject to Sections&nbsp;10.5 and
10.6, the Parent and the Company will at all times preserve and keep in full
force and effect the corporate existence of each Restricted Subsidiary (unless
merged into the Parent or a Wholly Owned Restricted Subsidiary, including the
Company) and all rights and franchises of the Parent and its Restricted
Subsidiaries, including the Company, unless, in the good faith judgment of the
Parent, the termination of or failure to preserve and keep in full force and
effect each corporate existence, right or franchise could not, individually or
in the aggregate, have a Material Adverse Effect.


<P align="left" style="font-size: 10pt"><B>9.6. Additional Subsidiary Guarantors.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Parent and the Company will cause any Subsidiary that (whether or not
required by the terms of the Credit Agreement) is to become a party to, or
guarantee, Debt in respect of the Credit Agreement or any other Senior Debt, to
enter into the Subsidiary Guaranty concurrently therewith and as a part thereof
to deliver to each of the holders:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a copy of an executed joinder to the Subsidiary Guaranty;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a certificate signed by a Responsible Officer confirming the
accuracy of the representations and warranties in Sections&nbsp;5.2, 5.6, 5.7
and 5.19, with respect to such Subsidiary and the Subsidiary Guaranty as
it relates to such Subsidiary, as applicable; and



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) an opinion of counsel (who may be counsel for the Company)
reasonably satisfactory to the Required Holders addressed to each holder
of the Notes to the effect that the Subsidiary Guaranty of such Person
has been duly authorized, executed and delivered and that the Subsidiary
Guaranty constitutes the legal, valid and binding contract and agreement
of such Person enforceable in accordance with its terms, except as an
enforcement of such terms may be limited by bankruptcy, insolvency,
fraudulent conveyance and similar laws affecting the enforcement of
creditors&#146; rights generally and by general equitable principles.


<P align="left" style="font-size: 10pt"><B>9.7. Ranking of Notes.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Debt evidenced by the Notes will at all times rank at least <I>pari passu</I>
with all of the Company&#146;s outstanding unsecured Senior Debt.


<P align="left" style="font-size: 10pt"><B>10. NEGATIVE COVENANTS.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the Parent and the Company covenants that so long as any of the
Notes are outstanding:


<P align="left" style="font-size: 10pt"><B>10.1. Consolidated Debt.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Parent will not permit the ratio of Consolidated Debt (as of the end
of any fiscal quarter of the Parent) to Consolidated EBITDA (for the Parent&#146;s
then most recently


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<P align="left" style="font-size: 10pt">completed four fiscal quarters) (a)&nbsp;to be greater than 3.50 to 1.00 at any time
or (b)&nbsp;to be greater than 3.25 to 1.00 for more than two consecutive fiscal
quarters.



<P align="left" style="font-size: 10pt"><B>10.2. Interest Coverage.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Parent will not permit the ratio of Consolidated EBIT to Consolidated
Interest Expense (in each case for the Parent&#146;s then most recently completed
four fiscal quarters) to be less than 2.0 to 1.0 at any time.


<P align="left" style="font-size: 10pt"><B>10.3. Priority Debt.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Parent and the Company will not permit Priority Debt to exceed 20% of
Consolidated Net Worth (determined as of the end of the Parent&#146;s most recently
completed fiscal quarter) at any time.


<P align="left" style="font-size: 10pt"><B>10.4. Liens.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Parent and the Company will not, and will not permit any Restricted
Subsidiary to, permit to exist, create, assume or incur, directly or
indirectly, any Lien on its properties or assets, whether now owned or
hereafter acquired, unless the Notes are equally and ratably secured by a Lien
on the same property and assets pursuant to an agreement reasonably acceptable
to the Required Holders, except:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Liens for taxes, assessments or governmental charges not then
due and delinquent or the nonpayment of which is permitted by Section
9.4;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Liens incidental to the conduct of business or the ownership of
properties and assets (including landlords&#146;, lessors&#146;, carriers&#146;,
operators&#146;, warehousemen&#146;s, mechanics&#146;, materialmen&#146;s and other similar
Liens) and Liens to secure the performance of bids, tenders, leases or
trade contracts, or to secure statutory obligations (including
obligations under workers compensation, unemployment insurance and other
social security legislation), surety or appeal bonds or other Liens of
like general nature incurred in the ordinary course of business and not
in connection with the borrowing of money;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) encumbrances in the nature of leases, subleases, zoning
restrictions, easements, rights of way and other rights and restrictions
of record on the use of real property and defects in title arising or
incurred in the ordinary course of business, which, individually and in
the aggregate, do not materially impair the use or value of the property
or assets subject thereto;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any attachment or judgment Lien, unless the judgment it secures
has not, within 60&nbsp;days after the entry thereof, been discharged or
execution thereof stayed pending appeal, or has not been discharged
within 60&nbsp;days after the expiration of any such stay;


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<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Liens securing Debt of a Restricted Subsidiary to the Parent or
to another Restricted Subsidiary, including the Company;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Liens (i)&nbsp;existing on property at the time of its acquisition by
the Parent or a Restricted Subsidiary, including the Company, and not
created in contemplation thereof, whether or not the Debt secured by such
Lien is assumed by the Parent or a Restricted Subsidiary; including the
Company, or (ii)&nbsp;on property created contemporaneously with its
acquisition or within 365&nbsp;days of the acquisition or completion of
construction or development thereof to secure or provide for all or a
portion of the purchase price or cost of the acquisition, construction or
development of such property after the date of Closing; or (iii)&nbsp;existing
on property of a Person at the time such Person is merged or consolidated
with, or becomes a Restricted Subsidiary of, or substantially all of its
assets are acquired by, the Parent or a Restricted Subsidiary, including
the Company, and not created in contemplation thereof; provided that in
the case of clauses (i), (ii)&nbsp;and (iii)&nbsp;such Liens do not extend to
additional property of the Parent or any Restricted Subsidiary, including
the Company, (other than property that is an improvement to or is
acquired for specific use in connection with the subject property) and
that the aggregate principal amount of Debt secured by each such Lien
does not exceed the fair market value (determined in good faith by one or
more officers of the Parent to whom authority to enter into such
transaction has been delegated by the board of directors of the Parent)
of the property subject thereto;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Liens resulting from extensions, renewals or replacements of
Liens permitted by paragraphs (e), (f)&nbsp;and (g), provided that (i)&nbsp;there
is no increase in the principal amount or decrease in maturity of the
Debt secured thereby at the time of such extension, renewal or
replacement, (ii)&nbsp;any new Lien attaches only to the same property
theretofore subject to such earlier Lien and (iii)&nbsp;immediately after such
extension, renewal or replacement no Default or Event of Default would
exist; and



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Liens securing Debt not otherwise permitted by paragraphs (a)
through (g)&nbsp;of this Section&nbsp;10.4, provided that Priority Debt does not
exceed 20% of Consolidated Net Worth at any time.


<P align="left" style="font-size: 10pt"><B>10.5. Mergers, Consolidations, etc.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Parent and the Company will not, and will not permit any Restricted
Subsidiary to, consolidate with or merge with any other Person or convey,
transfer, sell or lease all or substantially all of its assets in a single
transaction or series of transactions to any Person except that:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Company may consolidate or merge with the Parent or convey,
transfer, sell or lease all or substantially all of its assets in a
single transaction or series of transactions to the Parent, provided that
the Parent is the successor or survivor; and


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<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Parent may consolidate or merge with any other Person or
convey, transfer, sell or lease all or substantially all of its assets in
a single transaction or series of transactions to any Person, provided
that:



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the successor formed by such consolidation or the survivor
of such merger or the Person that acquires by conveyance, transfer,
sale or lease of all or substantially all of the assets of the
Parent as an entirety, as the case may be, shall be a solvent
corporation organized and existing under the laws of the United
States or any state thereof (including the District of Columbia),
and, if the Parent is not such corporation, such corporation (y)
shall have executed and delivered to each holder of any Notes its
assumption of the due and punctual performance and observance of
each covenant and condition of this Agreement and the Parent
Guaranty and (z)&nbsp;shall have caused to be delivered to each holder
of any Notes an opinion of outside counsel reasonably satisfactory
to the Required Holders, to the effect that all agreements or
instruments effecting such assumption are enforceable in accordance
with their terms and comply with the terms hereof; and



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) after giving effect to such transaction, no Default or
Event of Default shall exist; and



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Restricted Subsidiary other than the Company may (x)&nbsp;merge
into the Parent or the Company (provided that the Parent or the Company
is the surviving entity) or another Restricted Subsidiary or (y)&nbsp;sell,
transfer or lease all or any part of its assets to the Parent or the
Company or another Restricted Subsidiary, or (z)&nbsp;merge or consolidate
with, or sell, transfer or lease all or substantially all of its assets
to, any Person in a transaction that is permitted by Section&nbsp;10.6 or, as
a result of which, such Person becomes a Restricted Subsidiary; provided
in each instance set forth in clauses (x)&nbsp;through (z)&nbsp;that, immediately
after giving effect thereto, there shall exist no Default or Event of
Default;


<P align="left" style="font-size: 10pt">No such conveyance, transfer, sale or lease of all or substantially all of the
assets of the Parent shall have the effect of releasing the Parent or any
successor corporation that shall theretofore have become such in the manner
prescribed in this Section&nbsp;10.5 from its liability under this Agreement or the
Notes.



<P align="left" style="font-size: 10pt"><B>10.6. Sale of Assets.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as permitted by Section&nbsp;10.5, the Parent and the Company will not,
and will not permit any Restricted Subsidiary to, sell, lease, transfer or
otherwise dispose of, including by way of merger (collectively a
&#147;Disposition&#148;), any assets, including capital stock of Subsidiaries, in one or
a series of transactions, to any Person, other than:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Dispositions in the ordinary course of business;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Dispositions by a Restricted Subsidiary, including the Company,
to the Parent or another Restricted Subsidiary, including the Company;


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<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Dispositions not otherwise permitted by clauses (a)&nbsp;or (b)&nbsp;of
this Section&nbsp;10.6, provided that the aggregate net book value of all
assets so disposed of in any fiscal year pursuant to this Section&nbsp;10.6(c)
does not exceed 10% of Consolidated Total Assets as of the end of the
immediately preceding fiscal year.


<P align="left" style="font-size: 10pt">Notwithstanding the foregoing provisions of this Section&nbsp;10.6, the Parent may,
or may permit any Restricted Subsidiary, including the Company to, make a
Disposition and the assets subject to such Disposition shall not be subject to
or included in any of the limitations or the computation contained in foregoing
Section&nbsp;10.6(c) of the preceding sentence if:




<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) such assets are leased back by the Parent or any Restricted
Subsidiary, including the Company, as lessee, within 365&nbsp;days of the
original acquisition or construction thereof by the Parent or such
Restricted Subsidiary, including the Company; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the net proceeds from such Disposition are within 365&nbsp;days of
such Disposition:



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) reinvested in productive assets used in carrying on the
business of the Parent and its Restricted Subsidiaries, including
the Company; or



<P align="left" style="margin-left:6%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) applied to the payment or prepayment of any outstanding
Senior Debt (including the Notes) of the Parent or any Restricted
Subsidiary, including the Company.



<P align="left" style="margin-left:3%; font-size: 10pt">Any prepayment of Notes pursuant to this Section&nbsp;10.6 shall be in
accordance with Sections&nbsp;8.2 and 8.3, without regard to the minimum
prepayment requirements of Section&nbsp;8.2.


<P align="left" style="font-size: 10pt"><B>10.7. Designation of Restricted and Unrestricted Subsidiaries.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Parent may designate any Restricted Subsidiary as an Unrestricted
Subsidiary and any Unrestricted Subsidiary as a Restricted Subsidiary by notice
in writing given to the holders of the Notes; provided that,



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if such Subsidiary initially is designated a Restricted
Subsidiary, then such Restricted Subsidiary may be subsequently
designated as an Unrestricted Subsidiary and such Unrestricted Subsidiary
may be subsequently designated as a Restricted Subsidiary, but no further
changes in designation may be made;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if such Subsidiary initially is designated an Unrestricted
Subsidiary, then such Unrestricted Subsidiary may be subsequently
designated as a Restricted Subsidiary and such Restricted Subsidiary may
be subsequently designated as an Unrestricted Subsidiary, but no further
changes in designation may be made;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Parent may not designate a Restricted Subsidiary as an
Unrestricted Subsidiary unless: (i)&nbsp;such Restricted Subsidiary does not
own, directly or indirectly, any


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<P align="left" style="margin-left:3%; font-size: 10pt">Debt or capital stock of the Parent or any other Restricted
Subsidiary, including the Company, (ii)&nbsp;such designation, considered as a
sale of assets, is permitted pursuant to Section&nbsp;10.6, and (iii)
immediately before and after such designation there exists no Default or
Event of Default;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) notwithstanding Section&nbsp;10.4(g), if an Unrestricted Subsidiary
is designated as a Restricted Subsidiary, all outstanding Debt and Liens
of such Subsidiary shall be deemed to have been incurred as of the date
of such designation; and



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Parent may not designate the Company or any Subsidiary
Guarantor an Unrestricted Subsidiary.


<P align="left" style="font-size: 10pt"><B>10.8. Nature of Business.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Parent and the Company will not, and will not permit any other
Restricted Subsidiary to, engage in any business if, as a result, the general
nature of the business in which the Parent and its Restricted Subsidiaries,
including the Company, taken as a whole, would then be engaged would be
substantially changed from the general nature of the business of the Parent and
its Restricted Subsidiaries, including the Company, taken as a whole, as
described in the Memorandum.


<P align="left" style="font-size: 10pt"><B>10.9. Transactions with Affiliates.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Parent and the Company will not, and will not permit any other
Restricted Subsidiary to, enter into directly or indirectly any Material
transaction or Material group of related transactions (including the purchase,
lease, sale or exchange of properties of any kind or the rendering of any
service) with any Affiliate (other than the Parent, the Company or another
Restricted Subsidiary), except in the ordinary course and pursuant to the
reasonable requirements of the Parent&#146;s, the Company&#146;s or such Restricted
Subsidiary&#146;s business and upon fair and reasonable terms no less favorable to
the Parent, the Company or such Restricted Subsidiary than would be obtainable
in a comparable arm&#146;s-length transaction with a Person not an Affiliate.


<P align="left" style="font-size: 10pt"><B>11. EVENTS OF DEFAULT.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An &#147;Event of Default&#148; shall exist if any of the following conditions or
events shall occur and be continuing:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Company defaults in the payment of any principal or
Make-Whole Amount, if any, on any Note when the same becomes due and
payable, whether at maturity or at a date fixed for prepayment or by
declaration or otherwise; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Company defaults in the payment of any interest on any Note
for more than five Business Days after the same becomes due and payable;
or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Parent or the Company defaults in the performance of or
compliance with any term contained in Sections&nbsp;10.1, 10.2, 10.3, 10.4,
10.5 or 10.6; or


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<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Parent or the Company defaults in the performance of or
compliance with any term contained herein (other than those referred to
in paragraphs (a), (b)&nbsp;and (c)&nbsp;of this Section&nbsp;11) and such default is
not remedied within 30&nbsp;days after the earlier of (i)&nbsp;a Responsible
Officer obtaining actual knowledge of such default and (ii)&nbsp;the Parent or
the Company receiving written notice of such default from any holder of a
Note; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any representation or warranty made in writing by or on behalf
of the Company or any Guarantor or by any officer of the Company or any
Guarantor in this Agreement, the Parent Guaranty, the Subsidiary Guaranty
or in any writing furnished in connection with the transactions
contemplated hereby or thereby proves to have been false or incorrect in
any material respect on the date as of which made; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) (i)&nbsp;the Company, any Guarantor or any Restricted Subsidiary is
in default (as principal or as guarantor or other surety) in the payment
of any principal of or premium or make-whole amount or interest in excess
of $50,000 on any Debt that is outstanding in an aggregate principal
amount exceeding $5,000,000 beyond any period of grace provided with
respect thereto, or (ii)&nbsp;the Company or any Restricted Subsidiary is in
default in the performance of or compliance with any term of any evidence
of any Debt that is outstanding in an aggregate principal amount
exceeding $5,000,000 or of any mortgage, indenture or other agreement
relating thereto or any other condition exists, and as a consequence of
such default or condition such Debt has become, or has been declared, or
one or more Persons are entitled to declare such Debt to be, due and
payable before its stated maturity or before its regularly scheduled
dates of payment, or (iii)&nbsp;as a consequence of the occurrence or
continuation of any event or condition (other than the passage of time or
the right of the holder of Debt to convert such Debt into equity
interests), (x)&nbsp;the Company, any Guarantor or any Restricted Subsidiary
has become obligated to purchase or repay Debt in an aggregate principal
amount exceeding $5,000,000 before its regular maturity or before its
regularly scheduled dates of payment, or (y)&nbsp;one or more Persons have the
right to require the Company, any Guarantor or any Restricted Subsidiary
so to purchase or repay such Debt; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the Company, any Guarantor or any Material Subsidiary (i)&nbsp;is
generally not paying, or admits in writing its inability to pay, its
debts as they become due, (ii)&nbsp;files, or consents by answer or otherwise
to the filing against it of, a petition for relief or reorganization or
arrangement or any other petition in bankruptcy, for liquidation or to
take advantage of any bankruptcy, insolvency, reorganization, moratorium
or other similar law of any jurisdiction, (iii)&nbsp;makes an assignment for
the benefit of its creditors, (iv)&nbsp;consents to the appointment of a
custodian, receiver, trustee or other officer with similar powers with
respect to it or with respect to any substantial part of its property,
(v)&nbsp;is adjudicated as insolvent or to be liquidated, or (vi)&nbsp;takes
corporate action for the purpose of any of the foregoing; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) a court or governmental authority of competent jurisdiction
enters an order appointing, without consent by the Company, any Guarantor
or any Material Subsidiary, a custodian, receiver, trustee or other
officer with similar powers with respect to it or with respect to any
substantial part of its property, or constituting an order for relief or


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<P align="left" style="margin-left:3%; font-size: 10pt">approving a petition for relief or reorganization or any other
petition in bankruptcy or for liquidation or to take advantage of any
bankruptcy or insolvency law of any jurisdiction, or ordering the
dissolution, winding-up or liquidation of the Company, any Guarantor or
any Material Subsidiary, or any such petition shall be filed against the
Company, any Guarantor or any Material Subsidiary and such petition shall
not be dismissed within 60&nbsp;days; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a final judgment or judgments for the payment of money
aggregating in excess of $5,000,000 are rendered against one or more of
the Company, any Guarantor and any Restricted Subsidiaries, which
judgments are not, within 60&nbsp;days after entry thereof, bonded, discharged
or stayed pending appeal, or are not discharged within 60&nbsp;days after the
expiration of such stay; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) if (i)&nbsp;any Plan shall fail to satisfy the minimum funding
standards of ERISA or the Code for any plan year or part thereof or a
waiver of such standards or extension of any amortization period is
sought or granted under section 412 of the Code, (ii)&nbsp;a notice of intent
to terminate any Plan shall have been or is reasonably expected to be
filed with the PBGC or the PBGC shall have instituted proceedings under
ERISA section 4042 to terminate or appoint a trustee to administer any
Plan or the PBGC shall have notified the Parent, the Company or any other
ERISA Affiliate that a Plan may become a subject of any such proceedings,
(iii)&nbsp;the aggregate &#147;amount of unfunded benefit liabilities&#148; (within the
meaning of section 4001(a)(18) of ERISA) under all Plans determined in
accordance with Title IV of ERISA, shall exceed $5,000,000, (iv)&nbsp;the
Parent, the Company or any other ERISA Affiliate shall have incurred or
is reasonably expected to incur any liability pursuant to Title I or IV
of ERISA or the penalty or excise tax provisions of the Code relating to
employee benefit plans, (v)&nbsp;the Parent, the Company or any other ERISA
Affiliate withdraws from any Multiemployer Plan, or (vi)&nbsp;the Parent or
any Restricted Subsidiary, including the Company, establishes or amends
any employee welfare benefit plan that provides post-employment welfare
benefits in a manner that would increase the liability of the Parent or
any Restricted Subsidiary, including the Company, thereunder; and any
such event or events described in clauses (i)&nbsp;through (vi)&nbsp;above, either
individually or together with any other such event or events, could
reasonably be expected to have a Material Adverse Effect; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) any Guarantor defaults in the performance of or compliance with
any term contained in either of the Guaranties or either of the
Guaranties ceases to be in full force and effect, except as provided in
Section&nbsp;1.2(b), or is declared to be null and void in whole or in
material part by a court or other governmental or regulatory authority
having jurisdiction or the validity or enforceability thereof shall be
contested by any of the Parent, the Company or any Subsidiary Guarantor
or any of them renounces any of the same or denies that it has any or
further liability thereunder.


<P align="left" style="font-size: 10pt">As used in Section&nbsp;11(j), the terms &#147;employee benefit plan&#148; and &#147;employee
welfare benefit plan&#148; shall have the respective meanings assigned to such terms
in section 3 of ERISA.



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<P align="left" style="font-size: 10pt"><B>12. REMEDIES ON DEFAULT, ETC.</B>



<P align="left" style="font-size: 10pt"><B>12.1. Acceleration.</B>




<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If an Event of Default with respect to the Parent or the Company
described in paragraph (g)&nbsp;or (h)&nbsp;of Section&nbsp;11 (other than an Event of
Default described in clause (i)&nbsp;of paragraph (g)&nbsp;or described in clause
(vi)&nbsp;of paragraph (g)&nbsp;by virtue of the fact that such clause encompasses
clause (i)&nbsp;of paragraph (g)) has occurred, all the Notes then outstanding
shall automatically become immediately due and payable.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any other Event of Default has occurred and is continuing,
any holder or holders of more than 65% in principal amount of the Notes
at the time outstanding may at any time at its or their option, by notice
or notices to the Company, declare all the Notes then outstanding to be
immediately due and payable.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If any Event of Default described in paragraph (a)&nbsp;or (b)&nbsp;of
Section&nbsp;11 has occurred and is continuing, any holder or holders of Notes
at the time outstanding affected by such Event of Default may at any
time, at its or their option, by notice or notices to the Company,
declare all the Notes held by it or them to be immediately due and
payable.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon any Notes becoming due and payable under this Section&nbsp;12.1, whether
automatically or by declaration, such Notes will forthwith mature and the
entire unpaid principal amount of such Notes, plus (x)&nbsp;all accrued and unpaid
interest thereon and (y)&nbsp;the Make-Whole Amount determined in respect of such
principal amount (to the full extent permitted by applicable law), shall all be
immediately due and payable, in each and every case without presentment,
demand, protest or further notice, all of which are hereby waived. The Company
acknowledges, and the parties hereto agree, that each holder of a Note has the
right to maintain its investment in the Notes free from repayment by the
Company (except as herein specifically provided for) and that the provision for
payment of a Make-Whole Amount by the Company in the event that the Notes are
prepaid or are accelerated as a result of an Event of Default, is intended to
provide compensation for the deprivation of such right under such
circumstances.


<P align="left" style="font-size: 10pt"><B>12.2. Other Remedies.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any Default or Event of Default has occurred and is continuing, and
irrespective of whether any Notes have become or have been declared immediately
due and payable under Section&nbsp;12.1, the holder of any Note at the time
outstanding may proceed to protect and enforce the rights of such holder by an
action at law, suit in equity or other appropriate proceeding, whether for the
specific performance of any agreement contained herein or in any Note, or for
an injunction against a violation of any of the terms hereof or thereof, or in
aid of the exercise of any power granted hereby or thereby or by law or
otherwise.


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<P align="left" style="font-size: 10pt"><B>12.3. Rescission.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At any time after any Notes have been declared due and payable pursuant to
clause (b)&nbsp;or (c)&nbsp;of Section&nbsp;12.1, the holders of more than 65% in principal
amount of the Notes then outstanding, by written notice to the Company, may
rescind and annul any such declaration and its consequences if (a)&nbsp;the Company
has paid all overdue interest on the Notes, all principal of and Make-Whole
Amount, if any, on any Notes that are due and payable and are unpaid other than
by reason of such declaration, and all interest on such overdue principal and
Make-Whole Amount, if any, and (to the extent permitted by applicable law) any
overdue interest in respect of the Notes, at the Default Rate, (b)&nbsp;all Events
of Default and Defaults, other than non-payment of amounts that have become due
solely by reason of such declaration, have been cured or have been waived
pursuant to Section&nbsp;17, and (c)&nbsp;no judgment or decree has been entered for the
payment of any monies due pursuant hereto or to the Notes. No rescission and
annulment under this Section&nbsp;12.3 will extend to or affect any subsequent Event
of Default or Default or impair any right consequent thereon.


<P align="left" style="font-size: 10pt"><B>12.4. No Waivers or Election of Remedies, Expenses, etc.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No course of dealing and no delay on the part of any holder of any Note in
exercising any right, power or remedy shall operate as a waiver thereof or
otherwise prejudice such holder&#146;s rights, powers or remedies. No right, power
or remedy conferred by this Agreement or by any Note upon any holder thereof
shall be exclusive of any other right, power or remedy referred to herein or
therein or now or hereafter available at law, in equity, by statute or
otherwise. Without limiting the obligations of the Company under Section&nbsp;15,
the Company will pay to the holder of each Note on demand such further amount
as shall be sufficient to cover all reasonable costs and expenses of such
holder incurred in any enforcement or collection under this Section&nbsp;12,
including reasonable attorneys&#146; fees, expenses and disbursements.


<P align="left" style="font-size: 10pt"><B>13. REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES.</B>



<P align="left" style="font-size: 10pt"><B>13.1. Registration of Notes.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company shall keep at its principal executive office a register for
the registration and registration of transfers of Notes. The name and address
of each holder of one or more Notes, each transfer thereof and the name and
address of each transferee of one or more Notes shall be registered in such
register. Prior to due presentment for registration of transfer, the Person in
whose name any Note shall be registered shall be deemed and treated as the
owner and holder thereof for all purposes hereof, and the Company shall not be
affected by any notice or knowledge to the contrary. The Company shall give to
any holder of a Note that is an Institutional Investor, promptly upon request
therefor, a complete and correct copy of the names and addresses of all
registered holders of Notes.


<P align="left" style="font-size: 10pt"><B>13.2. Transfer and Exchange of Notes.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon surrender of any Note at the principal executive office of the
Company for registration of transfer or exchange (and in the case of a
surrender for registration of transfer,


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<P align="left" style="font-size: 10pt">duly endorsed or accompanied by a written instrument of transfer duly executed
by the registered holder of such Note or his attorney duly authorized in
writing and accompanied by the address for notices of each transferee of such
Note or part thereof), the Company shall execute and deliver within five
Business Days, at the Company&#146;s expense (except as provided below), one or more
new Notes (as requested by the holder thereof) in exchange therefor, in an
aggregate principal amount equal to the unpaid principal amount of the
surrendered Note. Each such new Note shall be payable to such Person as such
holder may request and shall be substantially in the form of Exhibit&nbsp;1(a).
Each such new Note shall be dated and bear interest from the date to which
interest shall have been paid on the surrendered Note or dated the date of the
surrendered Note if no interest shall have been paid thereon. The Company may
require payment of a sum sufficient to cover any stamp tax or governmental
charge imposed in respect of any such transfer of Notes. Notes shall not be
transferred in denominations of less than $500,000, provided that if necessary
to enable the registration of transfer by a holder of its entire holding of
Notes, one Note may be in a denomination of less than $500,000. Any
transferee, by its acceptance of a Note registered in its name (or the name of
its nominee), shall be deemed to have made the representation set forth in
Section&nbsp;6.2.



<P align="left" style="font-size: 10pt"><B>13.3. Restriction on Transfer to Competitor.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So long as no Event of Default has occurred and is continuing, you and
each subsequent holder of a Note agree not to transfer all or any portion of a
Note to any Competitor of the Company. As used herein, the term &#147;Competitor&#148;
means any Person (including any Subsidiary or Affiliate thereof) primarily
engaged in the residential and commercial electrical copper wire industry;
provided that such term shall not include any bank, trust company, savings and
loan association or other financial institution, any pension plan, any
investment company, any insurance company, any broker or dealer, or any other
similar financial institution or entity, regardless of legal form.


<P align="left" style="font-size: 10pt"><B>13.4. Replacement of Notes.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon receipt by the Company of evidence reasonably satisfactory to it of
the ownership of and the loss, theft, destruction or mutilation of any Note
(which evidence shall be, in the case of an Institutional Investor, notice from
such Institutional Investor of such ownership and such loss, theft, destruction
or mutilation), and



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of loss, theft or destruction, of indemnity
reasonably satisfactory to it (provided that if the holder of such Note
is, or is a nominee for, an original Purchaser or another Institutional
Investor holder of a Note with a minimum net worth of at least
$50,000,000, such Person&#146;s own unsecured agreement of indemnity shall be
deemed to be satisfactory), or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of mutilation, upon surrender and cancellation
thereof,


<P align="left" style="font-size: 10pt">the Company at its own expense shall execute and deliver within five Business
Days, in lieu thereof, a new Note, dated and bearing interest from the date to
which interest shall have been



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<P align="left" style="font-size: 10pt">paid on such lost, stolen, destroyed or mutilated Note or dated the date of
such lost, stolen, destroyed or mutilated Note if no interest shall have been
paid thereon.



<P align="left" style="font-size: 10pt"><B>14. PAYMENTS ON NOTES.</B>



<P align="left" style="font-size: 10pt"><B>14.1. Place of Payment.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to Section&nbsp;14.2, payments of principal, Make-Whole Amount, if any,
and interest becoming due and payable on the Notes shall be made in Chicago,
Illinois at the principal office of Bank of America, N.A. in such jurisdiction.
The Company may at any time, by notice to each holder of a Note, change the
place of payment of the Notes so long as such place of payment shall be either
the principal office of the Company in such jurisdiction or the principal
office of a bank or trust company in such jurisdiction.


<P align="left" style="font-size: 10pt"><B>14.2. Home Office Payment.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So long as you or your nominee shall be the holder of any Note, and
notwithstanding anything contained in Section&nbsp;14.1 or in such Note to the
contrary, the Company will pay all sums becoming due on such Note for
principal, Make-Whole Amount, if any, and interest by the method and at the
address specified for such purpose below your name in Schedule&nbsp;A, or by such
other method or at such other address as you shall have from time to time
specified to the Company in writing for such purpose, without the presentation
or surrender of such Note or the making of any notation thereon, except that
upon written request of the Company made concurrently with or reasonably
promptly after payment or prepayment in full of any Note, you shall surrender
such Note for cancellation, reasonably promptly after any such request, to the
Company at its principal executive office or at the place of payment most
recently designated by the Company pursuant to Section&nbsp;14.1. Prior to any sale
or other disposition of any Note held by you or your nominee you will, at your
election, either endorse thereon the amount of principal paid thereon and the
last date to which interest has been paid thereon or surrender such Note to the
Company in exchange for a new Note or Notes pursuant to Section&nbsp;13.2. The
Company will afford the benefits of this Section&nbsp;14.2 to any Institutional
Investor that is the direct or indirect transferee of any Note purchased by you
under this Agreement and that has made the same agreement relating to such Note
as you have made in this Section&nbsp;14.2.


<P align="left" style="font-size: 10pt"><B>15. EXPENSES, ETC.</B>



<P align="left" style="font-size: 10pt"><B>15.1. Transaction Expenses.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whether or not the transactions contemplated hereby are consummated, the
Parent or the Company will pay all reasonable costs and expenses (including
reasonable attorneys&#146; fees of a special counsel and, if reasonably required,
local or other counsel) incurred by you and each Other Purchaser or holder of a
Note in connection with such transactions and in connection with any
amendments, waivers or consents under or in respect of this Agreement, the
Notes or the Guaranties (whether or not such amendment, waiver or consent
becomes effective), including: (a)&nbsp;the costs and expenses incurred in enforcing
or defending (or determining whether or how to enforce or defend) any rights
under this Agreement, the Notes or the Guaranties or in responding


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<P align="left" style="font-size: 10pt">to any subpoena or other legal process or informal investigative demand issued
in connection with this Agreement, the Notes or the Guaranties, or by reason of
being a holder of any Note, (b)&nbsp;the costs and expenses, including financial
advisors&#146; fees, incurred in connection with the insolvency or bankruptcy of the
Parent or any Restricted Subsidiary, including the Company, or in connection
with any work-out or restructuring of the transactions contemplated hereby and
by the Notes and (c)&nbsp;the costs and expenses incurred in connection with the
initial filing of this Agreement and all related documents and financial
information, and all subsequent annual and interim filings of documents and
financial information related to this Agreement, with the Securities Valuation
Office of the National Association of Insurance Commissioners or any successor
organization succeeding to the authority thereof. The Parent or the Company
will pay, and will save you and each other holder of a Note harmless from, all
claims in respect of any fees, costs or expenses if any, of brokers and finders
(other than those retained by you).



<P align="left" style="font-size: 10pt"><B>15.2. Survival.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The obligations of the Parent and the Company under this Section&nbsp;15 will
survive the payment or transfer of any Note, the enforcement, amendment or
waiver of any provision of this Agreement or the Notes, and the termination of
this Agreement.


<P align="left" style="font-size: 10pt"><B>16. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All representations and warranties contained herein shall survive the
execution and delivery of this Agreement and the Notes, the purchase or
transfer by you of any Note or portion thereof or interest therein and the
payment of any Note, and may be relied upon by any subsequent holder of a Note,
regardless of any investigation made at any time by or on behalf of you or any
other holder of a Note. All statements contained in any certificate or other
instrument delivered by or on behalf of the Parent or the Company pursuant to
this Agreement or the Guaranties shall be deemed representations and warranties
of the Parent and the Company under this Agreement. Subject to the preceding
sentence, this Agreement, the Notes and the Guaranties embody the entire
agreement and understanding between you and the Parent and the Company and
supersede all prior agreements and understandings relating to the subject
matter hereof.


<P align="left" style="font-size: 10pt"><B>17. AMENDMENT AND WAIVER.</B>



<P align="left" style="font-size: 10pt"><B>17.1. Requirements.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement, the Notes, the Parent Guaranty and the Subsidiary Guaranty
may be amended, and the observance of any term hereof or of the Notes may be
waived (either retroactively or prospectively), with (and only with) the
written consent of the Parent, the Company and the Subsidiary Guarantors, if
parties thereto, and the Required Holders, except that (a)&nbsp;no amendment or
waiver of any of the provisions of Section&nbsp;1, 2, 3, 4, 5, 6 or 21 hereof, or
any defined term (as it is used therein), will be effective as to you unless
consented to by you in writing, and (b)&nbsp;no such amendment or waiver may,
without the written consent of the holder of each Note at the time outstanding
affected thereby, (i)&nbsp;subject to the provisions of Section&nbsp;12 relating to
acceleration or rescission, change the amount or time of any prepayment or
payment


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<P align="left" style="font-size: 10pt">of principal of, or reduce the rate or change the time of payment or method of
computation of interest or of the Make-Whole Amount on, the Notes, (ii)&nbsp;change
the percentage of the principal amount of the Notes the holders of which are
required to consent to any such amendment or waiver, or (iii)&nbsp;amend any of
Sections&nbsp;8, 11(a), 11(b), 12, 17 or 20.



<P align="left" style="font-size: 10pt"><B>17.2. Solicitation of Holders of Notes.</B>




<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Solicitation. The Parent and the Company will provide each
holder of the Notes (irrespective of the amount of Notes then owned by
it) with sufficient information, sufficiently far in advance of the date
a decision is required, to enable such holder to make an informed and
considered decision with respect to any proposed amendment, waiver or
consent in respect of any of the provisions hereof or of the Notes. The
Company will deliver executed or true and correct copies of each
amendment, waiver or consent effected pursuant to the provisions of this
Section&nbsp;17 to each holder of outstanding Notes promptly following the
date on which it is executed and delivered by, or receives the consent or
approval of, the requisite holders of Notes.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Payment. The Parent and the Company will not directly or
indirectly pay or cause to be paid any remuneration, whether by way of
supplemental or additional interest, fee or otherwise, or grant any
security, to any holder of Notes as consideration for or as an inducement
to the entering into by any holder of Notes or any waiver or amendment of
any of the terms and provisions hereof unless such remuneration is
concurrently paid, or security is concurrently granted, on the same
terms, ratably to each holder of Notes then outstanding even if such
holder did not consent to such waiver or amendment.


<P align="left" style="font-size: 10pt"><B>17.3. Binding Effect, etc.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any amendment or waiver consented to as provided in this Section&nbsp;17
applies equally to all holders of Notes and is binding upon them and upon each
future holder of any Note and upon the Parent, the Company and the Subsidiaries
(in each case, if a party thereto) without regard to whether such Note has been
marked to indicate such amendment or waiver. No such amendment or waiver will
extend to or affect any obligation, covenant, agreement, Default or Event of
Default not expressly amended or waived or impair any right consequent thereon.
No course of dealing between the Parent or the Company and the holder of any
Note nor any delay in exercising any rights hereunder or under any Note shall
operate as a waiver of any rights of any holder of such Note. As used herein,
the term &#147;this Agreement&#148; or &#147;the Agreement&#148; and references thereto shall mean
this Agreement as it may from time to time be amended or supplemented.


<P align="left" style="font-size: 10pt"><B>17.4. Notes held by Company, etc.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Solely for the purpose of determining whether the holders of the requisite
percentage of the aggregate principal amount of Notes then outstanding approved
or consented to any amendment, waiver or consent to be given under this
Agreement or the Notes, or have directed the taking of any action provided
herein or in the Notes to be taken upon the direction of


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<P align="left" style="font-size: 10pt">the holders of a specified percentage of the aggregate principal amount of
Notes then outstanding, Notes directly or indirectly owned by the Company or
any of its Affiliates shall be deemed not to be outstanding.



<P align="left" style="font-size: 10pt"><B>18. NOTICES.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All notices and communications provided for hereunder shall be in writing
and sent (a)&nbsp;by telecopy if the sender on the same day sends a confirming copy
of such notice by a recognized overnight delivery service (charges prepaid), or
(b)&nbsp;by registered or certified mail with return receipt requested (postage
prepaid), or (c)&nbsp;by a recognized overnight delivery service (with charges
prepaid). Any such notice must be sent:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if to you or your nominee, to you or it at the address
specified for such communications in Schedule&nbsp;A, or at such other
address as you or it shall have specified to the Company in
writing,



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if to any other holder of any Note, to such holder at
such address as such other holder shall have specified to the
Company in writing, or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if to the Company, the Parent or any Subsidiary
Guarantor, to the Company at its address set forth at the beginning
hereof to the attention of the Chief Financial Officer, or at such
other address as the Company shall have specified to the holder of
each Note in writing.


<P align="left" style="font-size: 10pt">Notices under this Section&nbsp;18 will be deemed given only when actually received.



<P align="left" style="font-size: 10pt"><B>19. REPRODUCTION OF DOCUMENTS.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement and all documents relating thereto, including (a)&nbsp;consents,
waivers and modifications that may hereafter be executed, (b)&nbsp;documents
received by you at the Closing (except the Notes themselves), and (c)&nbsp;financial
statements, certificates and other information previously or hereafter
furnished to you, may be reproduced by you by any photographic, photostatic,
microfilm, microcard, miniature photographic or other similar process and you
may destroy any original document so reproduced. The Company agrees and
stipulates that, to the extent permitted by applicable law, any such
reproduction shall be admissible in evidence as the original itself in any
judicial or administrative proceeding (whether or not the original is in
existence and whether or not such reproduction was made by you in the regular
course of business) and any enlargement, facsimile or further reproduction of
such reproduction shall likewise be admissible in evidence. This Section&nbsp;19
shall not prohibit the Company or any holder of Notes from contesting any such
reproduction to the same extent that it could contest the original, or from
introducing evidence to demonstrate the inaccuracy of any such reproduction.


<P align="left" style="font-size: 10pt"><B>20. CONFIDENTIAL INFORMATION.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the purposes of this Section&nbsp;20, &#147;Confidential Information&#148; means
information delivered to you by or on behalf of the Parent, the Company or any
Subsidiary in


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<P align="left" style="font-size: 10pt">connection with the transactions contemplated by or otherwise pursuant to this
Agreement that is proprietary in nature and that was clearly marked or labeled
or otherwise adequately identified when received by you as being confidential
information of the Parent, the Company or such Subsidiary, provided that such
term does not include information that (a)&nbsp;was publicly known or otherwise
known to you prior to the time of such disclosure, (b)&nbsp;subsequently becomes
publicly known through no act or omission by you or any Person acting on your
behalf, (c)&nbsp;otherwise becomes known to you other than through disclosure by the
Parent, the Company or any Subsidiary, or (d)&nbsp;constitutes financial statements
delivered to you under Section&nbsp;7.1 that are otherwise publicly available. You
will maintain the confidentiality of such Confidential Information in
accordance with procedures adopted by you in good faith to protect confidential
information of third parties delivered to you, provided that you may deliver or
disclose Confidential Information to (i)&nbsp;your directors, trustees, officers,
employees, agents, attorneys and Affiliates (to the extent such disclosure
reasonably relates to the administration of the investment represented by your
Notes), (ii)&nbsp;your financial advisors and other professional advisors who agree
to hold confidential the Confidential Information substantially in accordance
with the terms of this Section&nbsp;20, (iii)&nbsp;any other holder of any Note, (iv)&nbsp;any
Institutional Investor to which you sell or offer to sell such Note or any part
thereof or any participation therein (if such Person has agreed in writing
prior to its receipt of such Confidential Information to be bound by the
provisions of this Section&nbsp;20), (v)&nbsp;any Person from which you offer to purchase
any security of the Parent or the Company (if such Person has agreed in writing
prior to its receipt of such Confidential Information to be bound by the
provisions of this Section&nbsp;20), (vi)&nbsp;any federal or state regulatory authority
having jurisdiction over you, (vii)&nbsp;the National Association of Insurance
Commissioners or any similar organization, or any nationally recognized rating
agency that requires access to information about your investment portfolio or
(viii)&nbsp;any other Person to which such delivery or disclosure may be necessary
or appropriate (w)&nbsp;to effect compliance with any law, rule, regulation or order
applicable to you, (x)&nbsp;in response to any subpoena or other legal process, (y)
in connection with any litigation to which you are a party or (z)&nbsp;if an Event
of Default has occurred and is continuing, to the extent you may reasonably
determine such delivery and disclosure to be necessary or appropriate in the
enforcement or for the protection of the rights and remedies under your Notes
and this Agreement. Each holder of a Note, by its acceptance of a Note, will
be deemed to have agreed to be bound by and to be entitled to the benefits of
this Section&nbsp;20 as though it were a party to this Agreement. On reasonable
request by the Company in connection with the delivery to any holder of a Note
of information required to be delivered to such holder under this Agreement or
requested by such holder (other than a holder that is a party to this Agreement
or its nominee), such holder will enter into an agreement with the Company
embodying the provisions of this Section&nbsp;20.



<P align="left" style="font-size: 10pt"><B>21. SUBSTITUTION OF PURCHASER.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You shall have the right to substitute any one of your Affiliates as the
purchaser of the Notes that you have agreed to purchase hereunder, by written
notice to the Company, which notice shall be signed by both you and such
Affiliate, shall contain such Affiliate&#146;s agreement to be bound by this
Agreement and shall contain a confirmation by such Affiliate of the accuracy
with respect to it of the representations set forth in Section&nbsp;6. Upon receipt
of such notice, wherever the word &#147;you&#148; is used in this Agreement (other than
in this Section&nbsp;21), such word


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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">shall be deemed to refer to such Affiliate in lieu of you. In the event that
such Affiliate is so substituted as a purchaser hereunder and such Affiliate
thereafter transfers to you all of the Notes then held by such Affiliate, upon
receipt by the Company of notice of such transfer, wherever the word &#147;you&#148; is
used in this Agreement (other than in this Section&nbsp;21), such word shall no
longer be deemed to refer to such Affiliate, but shall refer to you, and you
shall have all the rights of an original holder of the Notes under this
Agreement.



<P align="left" style="font-size: 10pt"><B>22. MISCELLANEOUS.</B>



<P align="left" style="font-size: 10pt"><B>22.1. Successors and Assigns.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All covenants and other agreements contained in this Agreement by or on
behalf of any of the parties hereto bind and inure to the benefit of their
respective successors and assigns (including any subsequent holder of a Note)
whether so expressed or not.


<P align="left" style="font-size: 10pt"><B>22.2. Payments Due on Non-Business Days.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anything in this Agreement or the Notes to the contrary notwithstanding,
any payment of principal of or Make-Whole Amount or interest on any Note that
is due on a date other than a Business Day shall be made on the next succeeding
Business Day without including the additional days elapsed in the computation
of the interest payable on such next succeeding Business Day.


<P align="left" style="font-size: 10pt"><B>22.3. Severability.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any provision of this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall (to the full extent permitted by law) not invalidate or
render unenforceable such provision in any other jurisdiction.


<P align="left" style="font-size: 10pt"><B>22.4. Construction.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each covenant contained herein shall be construed (absent express
provision to the contrary) as being independent of each other covenant
contained herein, so that compliance with any one covenant shall not (absent
such an express contrary provision) be deemed to excuse compliance with any
other covenant. Where any provision herein refers to action to be taken by any
Person, or which such Person is prohibited from taking, such provision shall be
applicable whether such action is taken directly or indirectly by such Person.


<P align="left" style="font-size: 10pt"><B>22.5. Counterparts.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement may be executed in any number of counterparts, each of
which shall be an original but all of which together shall constitute one
instrument. Each counterpart may consist of a number of copies hereof, each
signed by less than all, but together signed by all, of the parties hereto.


<P align="center" style="font-size: 10pt">39
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt"><B>22.6. Governing Law.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement shall be construed and enforced in accordance with, and the
rights of the parties shall be governed by, the law of the State of Illinois
excluding choice-of-law principles of the law of such State that would require
the application of the laws of a jurisdiction other than such State.


<P align="left" style="font-size: 10pt"><B>22.7. Limitation on Interest.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You and the Other Purchasers, other holders of the Notes, the Company,
Parent, the Subsidiary Guarantors, and any other parties to the Note Documents
intend to contract in strict compliance with applicable usury law from time to
time in effect. In furtherance thereof such Persons stipulate and agree that
none of the terms and provisions contained herein or in the Notes shall ever be
construed to create a contract to pay, for the use, forbearance or detention of
money, interest in excess of the maximum amount of interest permitted to be
charged by applicable law from time to time in effect. Neither the Company,
nor Parent, nor the Subsidiary Guarantors nor any present or future guarantors,
endorsers, or other Persons hereafter becoming liable for payment of any
Obligation shall ever be liable for unearned interest thereon or shall ever be
required to pay interest thereon in excess of the maximum amount that may be
lawfully contracted for, charged, or received under applicable law from time to
time in effect, and the provisions of this section shall control over all other
provisions of the Note Documents which may be in conflict or apparent conflict
herewith. You and the Other Purchasers and other holders of the Notes
expressly disavow any intention to contract for, charge, or collect excessive
unearned interest or finance charges in the event the maturity of any Note is
accelerated. If (a)&nbsp;the maturity of any Note is accelerated for any reason,
(b)&nbsp;any Note is prepaid and as a result any amounts held to constitute interest
are determined to be in excess of the legal maximum, or (c)&nbsp;you or any Other
Purchaser or any other holder of any Note shall otherwise collect moneys that
are determined to constitute interest that would otherwise increase the
interest on any or all of the Notes to an amount in excess of that permitted to
be charged by applicable law then in effect, then all sums determined to
constitute interest in excess of such legal limit shall, without penalty, be
promptly applied to reduce the then outstanding principal of the related Notes
or, at such Purchaser&#146;s or holder&#146;s option, promptly returned to the Company or
other payor thereof upon such determination. In determining whether or not the
interest paid or payable, under any specific circumstance, exceeds the maximum
amount permitted under applicable law, you and the Other Purchasers, other
holders of the Notes, the Company, Parent, the Subsidiary Guarantors (and any
other payors thereof) shall to the greatest extent permitted under applicable
law, (i)&nbsp;characterize any non-principal payment as an expense, fee or premium
rather than as interest, (ii)&nbsp;exclude voluntary prepayments and the effects
thereof, and (iii)&nbsp;amortize, prorate, allocate, and spread the total amount of
interest throughout the entire contemplated term of the instruments evidencing
the Notes in accordance with the amounts outstanding from time to time
thereunder and the maximum legal rate of interest from time to time in effect
under applicable law in order to lawfully contract for, charge, or receive the
maximum amount of interest permitted under applicable law. In the event
applicable law provides for an interest ceiling under Chapter&nbsp;303 of the Texas
Finance Code (the &#147;Texas Finance Code&#148;) as amended, to the extent that the
Texas Finance Code is mandatorily applicable to you or any Other Purchaser or
any other


<P align="center" style="font-size: 10pt">40
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">holder of any Note, for that day, the ceiling shall be the &#147;weekly ceiling&#148; as
defined in the Texas Finance Code, provided that if any applicable law permits
greater interest, the law permitting the greatest interest shall apply.



<P align="left" style="font-size: 10pt"><B>22.8. Submission to Jurisdiction.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Any litigation based hereon, or arising out of, under or in connection
with this Agreement or the Notes, may be brought and maintained in the courts
of the State of Illinois or in the United States District Court for the
Northern District of Illinois. Each of the Company and the Parent expressly
and irrevocably submits to the jurisdiction of the courts of the State of
Illinois and of the United States District Court for the Northern District of
Illinois for the purpose of any such litigation as set forth above. Each of
the Company and the Parent further irrevocably consents to the service of
process by registered mail, postage prepaid, to the address specified in
Section&nbsp;18 or by personal service within or without the State of Illinois.
Each of the Company and the Parent expressly and irrevocably waives, to the
fullest extent permitted by law, any objection that it may now or hereafter
have to the laying of venue of any such litigation brought in any such court
referred to above and any claim that any such litigation has been brought in an
inconvenient forum.</B>


<P align="left" style="font-size: 10pt"><B>22.9. Waiver of Jury Trial.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Each of the Company and the Parent waives any right to a trial by jury in
any action or proceeding to enforce or defend any rights under this Agreement
or under any amendment, instrument, document or Agreement delivered or that may
in the future be delivered in connection herewith and agrees that any such
action or proceeding shall be tried before a court and not before a jury.</B>


<P align="center" style="font-size: 10pt">* * * * *



<P align="center" style="font-size: 10pt">41
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you are in agreement with the foregoing, please sign the form of
agreement on the accompanying counterpart of this Agreement and return it to
the Company, whereupon the foregoing shall become a binding agreement between
you, the Company and the Parent.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="55%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="43%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Very truly yours,</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">ENCORE WIRE LIMITED</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By its General Partner, EWC GP CORP.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By: /s/ DANIEL L. JONES</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name: Daniel L. Jones</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title: President</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">ENCORE WIRE CORPORATION</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By: /s/ DANIEL L. JONES</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name: Daniel L. Jones</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title: President</TD>
</TR>

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</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">S-1
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="font-size: 10pt">The foregoing is agreed to as of the date thereof.


<P align="left" style="font-size: 10pt">HARTFORD LIFE INSURANCE COMPANY<BR>
By: Hartford Investment Services, Inc.<BR>
Its Agent and Attorney-in-Fact


<P align="left" style="font-size: 10pt">By: /s/ RONALD A. MENDEL<BR>
Name: Ronald A. Mendel<BR>
Title: Managing Director


<P align="center" style="font-size: 10pt">S-2
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">GREAT-WEST LIFE &#038; ANNUITY INSURANCE COMPANY


<P align="left" style="font-size: 10pt">By: /s/ TAD ANDERSON<BR>
Name: Tad Anderson<BR>
Title: Manager, Investments


<P align="left" style="font-size: 10pt">By: /s/ J.G. LOWERY<BR>
Name: J.G. Lowery<BR>
Title: Assistant Vice President, Investments


<P align="left" style="font-size: 10pt">LONDON LIFE INSURANCE COMPANY


<P align="left" style="font-size: 10pt">By: /s/ B.R. ALLISON<BR>
Name: B.R. Allison<BR>
Title: Senior Vice-President


<P align="left" style="font-size: 10pt">By: /s/ D.B.E. AYERS<BR>
Name: D.B.E. Ayers<BR>
Title: Manager


<P align="left" style="font-size: 10pt">LONDON LIFE AND CASULATY REINSURANCE CORPORATION


<P align="left" style="font-size: 10pt">By: Orchard Capital Management, LLC as Investment Advisor


<P align="left" style="font-size: 10pt">By: /s/ TAD ANDERSON<BR>
Name: Tad Anderson<BR>
Title: Manager, Investments


<P align="left" style="font-size: 10pt">By: /s/ J.G. LOWERY<BR>
Name: J.G. Lowery<BR>
Title: Assistant Vice President, Investments


<P align="center" style="font-size: 10pt">S-3
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt">SCHEDULE A



<P align="center" style="font-size: 10pt">INFORMATION RELATING TO PURCHASERS


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="74%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Principal Amount of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name of Purchaser</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Notes to be Purchased</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Hartford Life Insurance Company</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">5,000,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">5,000,000</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="left" style="font-size: 10pt">Register Notes in name of: <B>Hartford Life Insurance Company</B>



<P align="left" style="font-size: 10pt">(1)&nbsp;Payment shall be made by bank wire transfer of immediately available
federal funds, providing sufficient information to identify the source of the
transfer, the amount of interest and/or principal and the series of Notes, to:


<P align="left" style="font-size: 10pt; margin-left: 3%">JP Morgan Chase<BR>
4 New York Plaza<BR>
New York, New York 10004<BR>
Bank ABA No.&nbsp;021000021<BR>
Chase NYC/Cust<BR>
A/C # 900-9-000200 for F/C/T G06609-LCA<BR>
Attn: Bond Interest/Principal &#151; Encore Wire Ltd.<BR>
5.27% Senior Notes Series&nbsp;2004-A due August&nbsp;27, 2011

<P align="left" style="font-size: 10pt; margin-left: 3%">PPN # 29263@ AA 7 Prin $<U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U> Int $<U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U>


<P align="left" style="font-size: 10pt">(2)&nbsp;All notices with respect to confirmation of payments on account of the
Notes shall be delivered or mailed to:


<P align="left" style="font-size: 10pt; margin-left: 3%">Hartford Investment Management Company<BR>
c/o Portfolio Support<BR>
P.O. Box 1744<BR>
Hartford, Connecticut 06144-1744<BR>
Telefacsimile: (860)&nbsp;297-8875/8876


<P align="left" style="font-size: 10pt">(3)&nbsp;All other communications shall be delivered or mailed to:


<P align="left" style="font-size: 10pt; margin-left: 3%">Hartford Investment Management Company<BR>
c/o Investment Department-Private Placements<BR>
P.O. Box 1744<BR>
Hartford, Connecticut 06144-1744<BR>
Telefacsimile: (860)&nbsp;297-8884


<P align="center" style="font-size: 10pt">Schedule&nbsp;A



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">(4)&nbsp;Notes are to be delivered to:


<P align="left" style="font-size: 10pt; margin-left: 3%">JP Morgan Chase<BR>
North America Insurance<BR>
3 Chase MetroTech Center- 5<SUP>th</SUP> Floor South<BR>
Brooklyn, New York 11245<BR>
Attn: Bettye Carrera<BR>
<B>Custody Account Number: G06609-LCA must appear on outside of envelope</B>


<P align="left" style="font-size: 10pt">Tax ID No.&nbsp;06-0974148



<P align="center" style="font-size: 10pt">Schedule&nbsp;A



<P align="center" style="font-size: 10pt">2
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="center" style="font-size: 10pt">INFORMATION RELATING TO PURCHASERS


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="74%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Principal Amount of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name of Purchaser</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Notes to be Purchased</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Hartford Life Insurance Company</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">5,000,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">5,000,000</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">5,000,000</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="left" style="font-size: 10pt">Register Notes in name of: <B>Hartford Life Insurance Company</B>



<P align="left" style="font-size: 10pt">(1)&nbsp;Payment shall be made by bank wire transfer of immediately available
federal funds, providing sufficient information to identify the source of the
transfer, the amount of interest and/or principal and the series of Notes, to:


<P align="left" style="font-size: 10pt; margin-left: 3%">JP Morgan Chase<BR>
4 New York Plaza<BR>
New York, New York 10004<BR>
Bank ABA No.&nbsp;021000021<BR>
Chase NYC/Cust<BR>
A/C # 900-9-000200 for F/C/T G06610-LFA<BR>
Attn: Bond Interest/Principal &#151; Encore Wire Ltd.<BR>
5.27% Senior Notes Series&nbsp;2004-A due August&nbsp;27, 2011

<P align="left" style="font-size: 10pt; margin-left: 3%">PPN # 29263@ AA 7 Prin $__________ Int $____________


<P align="left" style="font-size: 10pt">(2)&nbsp;All notices with respect to confirmation of payments on account of the
Notes shall be delivered or mailed to:


<P align="left" style="font-size: 10pt; margin-left: 3%">Hartford Investment Management Company<BR>
c/o Portfolio Support<BR>
P.O. Box 1744<BR>
Hartford, Connecticut 06144-1744<BR>
Telefacsimile: (860)&nbsp;297-8875/8876


<P align="left" style="font-size: 10pt">(3)&nbsp;All other communications shall be delivered or mailed to:


<P align="left" style="font-size: 10pt; margin-left: 3%">Hartford Investment Management Company<BR>
c/o Investment Department-Private Placements<BR>
P.O. Box 1744<BR>
Hartford, Connecticut 06144-1744<BR>
Telefacsimile: (860)&nbsp;297-8884


<P align="center" style="font-size: 10pt">Schedule&nbsp;A



<P align="center" style="font-size: 10pt">3
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">(4)&nbsp;Notes are to be delivered to:


<P align="left" style="font-size: 10pt; margin-left: 3%">JP Morgan Chase<BR>
North America Insurance<BR>
3 Chase MetroTech Center- 5<SUP>th</SUP> Floor South<BR>
Brooklyn, New York 11245<BR>
Attn: Bettye Carrera<BR>
<B>Custody Account Number: G06610-LFA must appear on outside of envelope</B>


<P align="left" style="font-size: 10pt">Tax ID No.&nbsp;06-0974148



<P align="center" style="font-size: 10pt">Schedule&nbsp;A



<P align="center" style="font-size: 10pt">4
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="center" style="font-size: 10pt">INFORMATION RELATING TO PURCHASERS


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="79%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Principal Amount of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name of Purchaser</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Notes to be Purchased</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Great-West Life &#038; Annuity Insurance Company</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">4,000,000</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="left" style="font-size: 10pt">Register Notes in name of: Great-West Life &#038; Annuity Insurance Company



<P align="left" style="font-size: 10pt">(1)&nbsp;Payment shall be made by bank wire transfer of immediately available
federal funds, providing sufficient information to identify the source of the
transfer, the amount of interest and/or principal and the series of Notes, to:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="19%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="78%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">ABA #021-000-018 BKofNYC/CTR/BBK=IOC566</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">P&#038;I Department &#151; GWL #640935</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Special Instructions:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1) security description (PPN# 29263@ AA 7),</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2) allocation of payment between principal and interest, and</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3) confirmation of principal balance.</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="left" style="font-size: 10pt">(2)&nbsp;All notices with respect to confirmation of payments on account of the
Notes shall be delivered or mailed to:


<P align="left" style="font-size: 10pt; margin-left: 3%">The Bank of New York<BR>
Institutional Custody Department, 14<SUP>th</SUP> Floor<BR>
One Wall Street<BR>
New York, New York 10286<BR>
Telecopier: (212)&nbsp;635-8844


<P align="left" style="font-size: 10pt">(3)&nbsp;All other communications shall be delivered or mailed to:


<P align="left" style="font-size: 10pt; margin-left: 3%">Great-West Life &#038; Annuity Insurance Company<BR>
Attention: Investments Division<BR>
8515 East Orchard Road, 3T2<BR>
Greenwood Village, Colorado 80111<BR>
Telecopier: (303)&nbsp;737-6193


<P align="center" style="font-size: 10pt">Schedule&nbsp;A



<P align="center" style="font-size: 10pt">5
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">(4)&nbsp;Notes are to be delivered to:


<P align="left" style="font-size: 10pt; margin-left: 3%">The Bank of New York<BR>
3<SUP>rd</SUP> Floor, Window A<BR>
One Wall Street<BR>
New York, New York 10286<BR>
Attention: Receive/Deliver Department &#151; GWL #640935


<P align="left" style="font-size: 10pt">Tax ID No.&nbsp;84-0467907



<P align="center" style="font-size: 10pt">Schedule&nbsp;A



<P align="center" style="font-size: 10pt">6
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="center" style="font-size: 10pt">INFORMATION RELATING TO PURCHASERS


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="79%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Principal Amount of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name of Purchaser</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Notes to be Purchased</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Great-West Life &#038; Annuity Insurance Company</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">6,000,000</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="left" style="font-size: 10pt">Register Notes in name of: Great-West Life &#038; Annuity Insurance Company



<P align="left" style="font-size: 10pt">(1)&nbsp;Payment shall be made by bank wire transfer of immediately available
federal funds, providing sufficient information to identify the source of the
transfer, the amount of interest and/or principal and the series of Notes, to:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="19%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="78%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">ABA #021-000-018 BKofNYC/CTR/BBK=IOC566</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">P&#038;I Department &#151; GWL #140677</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left"><B>GWLA HEALTH ACCOUNT #140677</B></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Special Instructions:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1) security description (PPN# 29263@ AA 7),</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2) allocation of payment between principal and interest, and</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3) confirmation of principal balance.</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="left" style="font-size: 10pt">(2)&nbsp;All notices with respect to confirmation of payments on account of the
Notes shall be delivered or mailed to:


<P align="left" style="font-size: 10pt; margin-left: 3%">The Bank of New York<BR>
Attention: GWL&#038;A Administrator<BR>
Institutional Custody Department, 14<SUP>th</SUP> Floor<BR>
One Wall Street<BR>
New York, New York 10286<BR>
Telecopier: (212)&nbsp;635-8844


<P align="left" style="font-size: 10pt">(3)&nbsp;All other communications shall be delivered or mailed to:


<P align="left" style="font-size: 10pt; margin-left: 3%">Great-West Life &#038; Annuity Insurance Company<BR>
Attention: Investments Division<BR>
8515 East Orchard Road, 3T2<BR>
Greenwood Village, Colorado 80111<BR>
Facsimile: (303)&nbsp;737-6193


<P align="center" style="font-size: 10pt">Schedule&nbsp;A



<P align="center" style="font-size: 10pt">7
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">(4)&nbsp;Notes are to be delivered to:


<P align="left" style="font-size: 10pt; margin-left: 3%">The Bank of New York<BR>
3<SUP>rd</SUP> Floor, Window A<BR>
One Wall Street<BR>
New York, New York 10286<BR>
Attention: Receive/Deliver Department &#151; GWLA #140677


<P align="left" style="font-size: 10pt">Tax ID No.&nbsp;84-0467907



<P align="center" style="font-size: 10pt">Schedule&nbsp;A



<P align="center" style="font-size: 10pt">8
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="center" style="font-size: 10pt">INFORMATION RELATING TO PURCHASERS


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="72%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="11%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Principal Amount of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name of Purchaser</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Notes to be Purchased</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">London Life Insurance Company</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">7,000,000</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="left" style="font-size: 10pt">Register Notes in name of: London Life Insurance Company



<P align="left" style="font-size: 10pt">(1)&nbsp;Payment shall be made by bank wire transfer of immediately available
federal funds, providing sufficient information to identify the source of the
transfer, the amount of interest and/or principal and the series of Notes, to:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="71%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Pay Through:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Wachovia Bank NA</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">New York</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">SWIFT Code: PNBPUS3NNYC</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fed Routing: 026005092</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Intermediary Institution:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bank of Montreal</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">SWIFT BIC Address: BOFMCAT2FXM</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">ACCOUNT No.: 2000192009836</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CHIPS UID: 192531</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Account with Institution:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bank of Montreal</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">335 Main Street, Winnipeg, Manitoba, Canada R3C 2R6</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Canadian Direct Payment Routing Number: 000105797</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Bank of Montreal: 0001</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Branch Transit Number: 05797</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Beneficiary:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Transit No. &#038; Account No.: 05794700026</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">London Life Insurance Company</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">100 Osborne Street North</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Winnipeg, Manitoba, Canada R3C 3A5</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Special Instructions:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1) security description (PPN# 29263@ AA 7),</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2) allocation of payment between principal and interest, and</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3) confirmation of principal balance.</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">Schedule&nbsp;A



<P align="center" style="font-size: 10pt">9
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">(2) All notices with respect to confirmation of payments on account of the
Notes shall be delivered or mailed to:


<P align="left" style="font-size: 10pt; margin-left: 3%">Bank of Montreal<BR>
335 Main Street<BR>
Winnipeg, Manitoba<BR>
Canada R3C 2R6<BR>
Facsimile: (204)&nbsp;985-2123


<P align="left" style="font-size: 10pt">(3) All other communications shall be delivered or mailed to:


<P align="left" style="font-size: 10pt; margin-left: 3%">London Life Insurance Company<BR>
Great-West Life Centre<BR>
100 Osborne Street North<BR>
Winnipeg, Manitoba<BR>
Canada R3C 3A5<BR>
Attention: Securities Administration -2C<BR>
Facsimile: (204)&nbsp;946-8395


<P>
<TABLE width="100%" border="0" cellpadding="2" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>
<TR valign="top">
    <TD nowrap><B>pc:</B>&nbsp;</TD>
    <TD>Great-West Life &#038; Annuity Insurance Company<br>
Attention: Investments Division<br>
8515 E. Orchard Road, 3T2<br>
Greenwood Village, Colorado 80111<br>
Facsimile: (303)&nbsp;737-6193</TD>
</TR>
</TABLE>


<P align="left" style="font-size: 10pt">(4)&nbsp;Notes are to be delivered to:


<P align="left" style="font-size: 10pt; margin-left: 3%">London Life Insurance Company<BR>
Great-West Life Centre<BR>
100 Osborne Street North<BR>
Winnipeg, Manitoba<BR>
Canada R3C 3A5<BR>
Attention: Securities Administration -2C


<P align="center" style="font-size: 10pt">Schedule&nbsp;A



<P align="center" style="font-size: 10pt">10
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="center" style="font-size: 10pt">INFORMATION RELATING TO PURCHASERS


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="81%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Principal Amount of</B></TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Name of Purchaser</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3"><B>Notes to be Purchased</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">London Life and Casualty Reinsurance Corporation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right">$</TD>
    <TD align="right">3,000,000</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="left" style="font-size: 10pt">Register Notes in name of: London Life and Casualty Reinsurance Corporation



<P align="left" style="font-size: 10pt">(1)&nbsp;Payment shall be made by bank wire transfer of immediately available
federal funds, providing sufficient information to identify the source of the
transfer, the amount of interest and/or principal and the series of Notes, to:


<P align="left" style="font-size: 10pt; margin-left: 3%">ABA #011500010 Fleet Inv Services/A/C 050031338100101/<BR>
FBO LLCRC Life/0008843610

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="19%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="78%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Special Instructions:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1) security description (PPN# 29263@ AA 7),</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2) allocation of payment between principal and interest, and</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3) confirmation of principal balance.</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="left" style="font-size: 10pt">(2)&nbsp;All notices with respect to confirmation of payments on account of the
Notes shall be delivered or mailed to:


<P align="left" style="font-size: 10pt; margin-left: 3%">Fleet Bank<BR>
One Federal Street<BR>
Mail Code 10305A<BR>
Boston, Massachusetts 02210<BR>
Attention: Carol Carbone<BR>
Facsimile: (401)&nbsp;278-3792


<P align="left" style="font-size: 10pt">(3)&nbsp;All other communications shall be delivered or mailed to:


<P align="left" style="font-size: 10pt; margin-left: 3%">London Life and Casualty Reinsurance Corporation<BR>
c/o Orchard Capital Management, LLC<BR>
Attention: Investments Division<BR>
8515 East Orchard Road, 3T2<BR>
Greenwood Village, Colorado 80111<BR>
Facsimile: (303)&nbsp;737-6193


<P align="center" style="font-size: 10pt">Schedule&nbsp;A



<P align="center" style="font-size: 10pt">11
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">(4)&nbsp;Notes are to be delivered to:


<P align="left" style="font-size: 10pt; margin-left: 3%">Fleet Bank<BR>
159 East Main Street<BR>
Mail Code NYUT37403D<BR>
Rochester, New York 14692<BR>
Attention: Mary Jo Didia


<P align="left" style="font-size: 10pt">Tax ID No.&nbsp;98-0107585



<P align="center" style="font-size: 10pt">Schedule&nbsp;A



<P align="center" style="font-size: 10pt">12
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="right" style="font-size: 10pt">SCHEDULE B



<P align="center" style="font-size: 10pt"><B>DEFINED TERMS</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As used herein, the following terms have the respective meanings set forth
below or set forth in the Section hereof following such term:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Affiliate&#148; </B>means, at any time, and with respect to any Person, (a)&nbsp;any
other Person that at such time directly or indirectly through one or more
intermediaries Controls, or is Controlled by, or is under common Control with,
such first Person, and (b)&nbsp;any Person beneficially owning or holding, directly
or indirectly, 15% or more of any class of voting or equity interests of the
Company or any Subsidiary or any corporation of which the Company and its
Subsidiaries beneficially own or hold, in the aggregate, directly or
indirectly, 15% or more of any class of voting or equity interests. As used in
this definition, <B>&#147;Control&#148; </B>means the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of a
Person, whether through the ownership of voting securities, by contract or
otherwise. Unless the context otherwise clearly requires, any reference to an
&#147;Affiliate&#148; is a reference to an Affiliate of the Parent or the Company.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Anti-Terrorism Order&#148; </B>means Executive Order 13224 of September&nbsp;23, 2001
Blocking Property and Prohibiting Transactions With Persons Who Commit,
Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Business Day&#148; </B>means (a)&nbsp;for the purposes of Section&nbsp;8.6 only, any day
other than a Saturday, a Sunday or a day on which commercial banks in New York
City are required or authorized to be closed, and (b)&nbsp;for the purposes of any
other provision of this Agreement, any day other than a Saturday, a Sunday or a
day on which commercial banks in Chicago, Illinois or New York City are
required or authorized to be closed.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Capital Lease&#148; </B>means, at any time, a lease with respect to which the
lessee is required concurrently to recognize the acquisition of an asset and
the incurrence of a liability in accordance with GAAP.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Closing&#148; </B>is defined in Section&nbsp;3.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Code&#148; </B>means the Internal Revenue Code of 1986, as amended from time to
time, and the rules and regulations promulgated thereunder from time to time.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Company&#148; </B>means Encore Wire Limited, a Texas limited partnership.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Confidential Information&#148; </B>is defined in Section&nbsp;20.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Consolidated Debt&#148; </B>means, as of any date, outstanding Debt of the Parent
and its Restricted Subsidiaries, including the Company, as of such date,
determined on a consolidated basis in accordance with GAAP.


<P align="center" style="font-size: 10pt">Schedule&nbsp;B



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Consolidated EBIT&#148; </B>means, for any period, the sum of Consolidated Net
Income for such period, plus, to the extent deducted in determining such
Consolidated Net Income, (i)&nbsp;Consolidated Interest Expense, (ii)&nbsp;federal,
state, local and foreign income, franchise, value added and similar taxes, and
(iii)&nbsp;other non-cash charges, except depreciation and amortization expense.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Consolidated EBITDA&#148; </B>means, for any period, the sum of Consolidated Net
Income for such period, plus, to the extent deducted in determining such
Consolidated Net Income, (i)&nbsp;Consolidated Interest Expense, (ii)&nbsp;federal,
state, local and foreign income, franchise, value added and similar taxes,
(iii)&nbsp;depreciation and amortization expense and (iv)&nbsp;other non-cash charges.
If, during the period for which Consolidated EBITDA is being calculated, the
Parent or a Restricted Subsidiary, including the Company, has acquired one or
more Persons (or the assets thereof) or divested one or more Restricted
Subsidiaries (or the assets thereof), Consolidated EBITDA shall be calculated
on a pro forma basis as if all of such acquisitions (other than acquisitions by
or resulting in Unrestricted Subsidiaries) and divestitures had occurred on the
first day of such period.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Consolidated Interest Expense&#148; </B>means, for any period, the consolidated
interest expense of the Parent and its Restricted Subsidiaries, including the
Company, for such period determined in accordance with GAAP.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Consolidated Net Income&#148; </B>means, for any period, the net income or loss of
the Parent and its Restricted Subsidiaries, including the Company, for such
period determined on a consolidated basis in accordance with GAAP.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Consolidated Net Worth&#148; </B>means, as of any date, the consolidated
stockholders&#146; equity of the Parent and its Restricted Subsidiaries, including
the Company, as of such date, determined in accordance with GAAP, less minority
interests.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Consolidated Total Assets&#148; </B>means, as of any date, the assets and
properties of the Parent and its Restricted Subsidiaries, including the
Company, as of such date, determined on a consolidated basis in accordance with
GAAP.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Credit Agreement&#148; </B>means the Credit Agreement dated as of August&nbsp;27, 2004
by and among the Company, Bank of America, N.A., as agent, and Wells Fargo
Bank, N.A., as a lender and the other lenders party thereto, as such agreement
may be hereafter amended, modified, restated, supplemented, refinanced,
increased or reduced from time to time, and any successor credit agreement or
similar facilities.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Debt&#148; </B>with respect to any Person means, at any time, without duplication,



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) its liabilities for borrowed money;


<P align="center" style="font-size: 10pt">Schedule&nbsp;B



<P align="center" style="font-size: 10pt">2
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">





<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) its liabilities for the deferred purchase price of property
acquired by such Person (excluding accounts payable and other accrued
liabilities arising in the ordinary course of business but including all
liabilities created or arising under any conditional sale or other title
retention agreement with respect to any such property);



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all liabilities appearing on its balance sheet in accordance
with GAAP in respect of Capital Leases;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all liabilities for borrowed money secured by any Lien with
respect to any property owned by such Person (whether or not it has
assumed or otherwise become liable for such liabilities);



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) its redemption liabilities under mandatorily redeemable
preferred stock, to the extent such obligations arise prior to the stated
maturity of the Notes; and



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any Guaranty of such Person with respect to liabilities of a
type described in any of clauses (a)&nbsp;through (e)&nbsp;hereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Default&#148; </B>means an event or condition the occurrence or existence of which
would, with the lapse of time or the giving of notice or both, become an Event
of Default.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Default Rate&#148; </B>means that rate of interest that is the greater of (i)&nbsp;2%
per annum above the rate of interest stated in clause (a)&nbsp;of the first
paragraph of the Notes or (ii)&nbsp;2% over the rate of interest publicly announced
by Bank of America, N.A. as its &#147;base&#148; or &#147;prime&#148; rate.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Disposition&#148; </B>is defined in Section&nbsp;10.6


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Environmental Laws&#148; </B>means any and all federal, state, local, and foreign
statutes, laws, regulations, ordinances, rules, judgments, orders, decrees,
permits, concessions, grants, franchises, licenses, agreements or governmental
restrictions relating to pollution and the protection of the environment or the
release of any materials into the environment, including but not limited to
those related to hazardous substances or wastes, air emissions and discharges
to waste or public systems.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;ERISA&#148; </B>means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and the rules and regulations promulgated thereunder
from time to time in effect.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;ERISA Affiliate&#148; </B>means any trade or business (whether or not
incorporated) that is treated as a single employer together with the Company
under section 414 of the Code.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Event of Default&#148; </B>is defined in Section&nbsp;11.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#148;<B>Exchange Act&#148; </B>means the Securities Exchange Act of 1934, as amended.


<P align="center" style="font-size: 10pt">Schedule&nbsp;B



<P align="center" style="font-size: 10pt">3
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;GAAP&#148; </B>means generally accepted accounting principles as in effect from
time to time in the United States of America.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Governmental Authority&#148; </B>means



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the government of



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the United States of America or any state or other
political subdivision thereof, or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any jurisdiction in which the Company or any Subsidiary
conducts all or any part of its business, or which asserts
jurisdiction over any properties of the Company or any Subsidiary,
or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any entity exercising executive, legislative, judicial,
regulatory or administrative functions of, or pertaining to, any such
government.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Guaranty&#148; </B>means, with respect to any Person, any obligation (except the
endorsement in the ordinary course of business of negotiable instruments for
deposit or collection) of such Person guaranteeing or in effect guaranteeing
any debt, dividend or other obligation of any other Person in any manner,
whether directly or indirectly, including obligations incurred through an
agreement, contingent or otherwise, by such Person:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to purchase such debt or obligation or any property constituting
security therefor;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to advance or supply funds (i)&nbsp;for the purchase or payment of
such debt or obligation, or (ii)&nbsp;to maintain any working capital or other
balance sheet condition or any income statement condition of any other
Person or otherwise to advance or make available funds for the purchase
or payment of such debt or obligation;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to lease properties or to purchase properties or services
primarily for the purpose of assuring the owner of such debt or
obligation of the ability of any other Person to make payment of the debt
or obligation; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) otherwise to assure the owner of such debt or obligation against
loss in respect thereof.


<P align="left" style="font-size: 10pt">In any computation of the debt or other liabilities of the obligor under any
Guaranty, the debt or other obligations that are the subject of such Guaranty
shall be assumed to be direct obligations of such obligor.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Guaranties&#148; </B>is defined in Section&nbsp;1.2(a).


<P align="center" style="font-size: 10pt">Schedule&nbsp;B



<P align="center" style="font-size: 10pt">4
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Hazardous Material&#148; </B>means any and all pollutants, toxic or hazardous
wastes or any other substances that might pose a hazard to health or safety,
the removal of which may be required or the generation, manufacture, refining,
production, processing, treatment, storage, handling, transportation, transfer,
use, disposal, release, discharge, spillage, seepage, or filtration of which is
or shall be restricted, prohibited or penalized by any applicable law
(including, asbestos, urea formaldehyde foam insulation and polycholorinated
biphenyls).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;holder&#148; </B>means, with respect to any Note, the Person in whose name such
Note is registered in the register maintained by the Company pursuant to
Section&nbsp;13.1.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;INHAM Exemption&#148; </B>is defined in Section&nbsp;6.2(e).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Institutional Investor&#148; </B>means (a)&nbsp;any original purchaser of a Note, (b)
any holder of $5,000,000 or more in aggregate principal amount of the Notes and
(c)&nbsp;any bank, trust company, savings and loan association or other financial
institution, any pension plan, any investment company, any insurance company,
any broker or dealer, or any other similar financial institution or entity,
regardless of legal form.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Lien&#148; </B>means, with respect to any Person, any mortgage, lien, pledge,
charge, security interest or other encumbrance, or any interest or title of any
vendor, lessor, lender or other secured party to or of such Person under any
conditional sale or other title retention agreement or Capital Lease, upon or
with respect to any property or asset of such Person (including in the case of
stock, stockholder agreements, voting trust agreements and all similar
arrangements).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Make-Whole Amount&#148; </B>is defined in Section&nbsp;8.6.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Material&#148; </B>means material in relation to the business, operations,
affairs, financial condition, assets or properties of the Parent and its
Subsidiaries, including the Company, taken as a whole.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Material Adverse Effect&#148; </B>means a material adverse effect on (a)&nbsp;the
business, operations, affairs, financial condition, assets or properties of the
Parent and its Subsidiaries, including the Company, taken as a whole, (b)&nbsp;the
ability of the Company to perform its obligations under this Agreement and the
Notes, (c)&nbsp;the ability of the Parent to perform its obligations under this
Agreement or the Parent Guaranty, (d)&nbsp;the ability of any Subsidiary Guarantor
to perform its obligations under the Subsidiary Guaranty, or (e)&nbsp;the validity
or enforceability of this Agreement, the Notes, the Parent Guaranty or the
Subsidiary Guaranty.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Material Subsidiary&#148; </B>means, at any time, any Restricted Subsidiary that
would at such time account for more than 10% of (i)&nbsp;Consolidated Total Assets
as of the end of the most recently completed fiscal quarter or (ii)
consolidated revenue of the Parent and its


<P align="center" style="font-size: 10pt">Schedule&nbsp;B



<P align="center" style="font-size: 10pt">5
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">Restricted Subsidiaries, including the Company, for the four fiscal quarters
ending as of the end of the most recently completed fiscal quarter.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Memorandum&#148; </B>is defined in Section&nbsp;5.3.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Multiemployer Plan&#148; </B>means any Plan that is a &#147;multiemployer plan&#148; (as
such term is defined in section 4001(a)(3) of ERISA).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Notes&#148; </B>is defined in Section&nbsp;1.1.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Officer&#146;s Certificate&#148; </B>means a certificate of a Senior Financial Officer
or of any other officer of the Parent whose responsibilities extend to the
subject matter of such certificate.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Other Purchasers&#148; </B>is defined in Section&nbsp;2.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;PBGC&#148; </B>means the Pension Benefit Guaranty Corporation referred to and
defined in ERISA or any successor thereto.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Parent&#148; </B>means Encore Wire Corporation, a Delaware corporation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Parent Guaranty&#148; </B>is defined in Section&nbsp;1.2(a).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Person&#148; </B>means an individual, partnership, corporation, limited liability
company, association, trust, unincorporated organization, or a government or
agency or political subdivision thereof.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Plan&#148; </B>means an &#147;employee benefit plan&#148; (as defined in section 3(3) of
ERISA) that is or, within the preceding five years, has been established or
maintained, or to which contributions are or, within the preceding five years,
have been made or required to be made, by the Company or any ERISA Affiliate or
with respect to which the Company or any ERISA Affiliate may have any
liability.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Priority Debt&#148; </B>means, as of any date, the sum (without duplication) of
(a)&nbsp;Debt of the Parent or a Restricted Subsidiary, including the Company,
secured by Liens not otherwise permitted by Sections&nbsp;10.4(a) through (g), and
(b)&nbsp;unsecured Debt of a Restricted Subsidiary other than (i)&nbsp;the Notes, (ii)
Debt owed to the Parent or any other Restricted Subsidiary, including the
Company, (iii)&nbsp;any guarantee of the Notes pursuant to the Subsidiary Guaranty,
(iv)&nbsp;Debt of a Person (other than an Unrestricted Subsidiary) outstanding at
the time such Person became a Restricted Subsidiary, provided that such Debt
was not incurred in contemplation of such Person becoming a Restricted
Subsidiary and (v)&nbsp;Debt of the Company under the Credit Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;property&#148; </B>or <B>&#147;properties&#148; </B>means, unless otherwise specifically limited,
real or personal property of any kind, tangible or intangible, choate or
inchoate.


<P align="center" style="font-size: 10pt">Schedule&nbsp;B



<P align="center" style="font-size: 10pt">6
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Purchaser&#148; </B>means each purchaser listed in Schedule&nbsp;A.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;QPAM Exemption&#148; </B>is defined in Section&nbsp;6.2(d).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Required Holders&#148; </B>means, at any time, the holders of more than 65% in
principal amount of the Notes at the time outstanding (exclusive of Notes then
owned by the Company or any of its Affiliates).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Responsible Officer&#148; </B>means any Senior Financial Officer and any other
officer of the Parent with responsibility for the administration of the
relevant portion of this agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Restricted Subsidiary&#148; </B>means any Subsidiary (a)&nbsp;of which at least a
majority of the voting securities are owned by the Parent and/or one or more
Restricted Subsidiaries and (b)&nbsp;that the Parent has not designated an
Unrestricted Subsidiary by notice in writing given to the holders of the Notes
pursuant to Section&nbsp;10.7.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Securities Act&#148; </B>means the Securities Act of 1933, as amended from time to
time.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Senior Debt&#148; </B>means, at any time, all Consolidated Debt other than
Subordinated Debt.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Senior Financial Officer&#148; </B>means the chief financial officer, principal
accounting officer, treasurer or comptroller of the Parent.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Source&#148; </B>is defined in Section&nbsp;6.2.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Subordinated Debt&#148; </B>means any Debt that is in any manner subordinated in
right of payment or security in any respect to Debt evidenced by the Notes


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Subsidiary&#148; </B>means, as to any Person, any corporation, association or
other business entity in which such Person or one or more of its Subsidiaries
or such Person and one or more of its Subsidiaries owns sufficient equity or
voting interests to enable it or them (as a group) ordinarily, in the absence
of contingencies, to elect a majority of the directors (or Persons performing
similar functions) of such entity, and any partnership, joint venture or
limited liability company if more than a 50% interest in the profits or capital
thereof is owned by such Person or one or more of its Subsidiaries or such
Person and one or more of its Subsidiaries (unless such partnership or limited
liability company can and does ordinarily take major business actions without
the prior approval of such Person or one or more of its Subsidiaries). Unless
the context otherwise clearly requires, any reference to a &#147;Subsidiary&#148; is a
reference to a Subsidiary of the Parent.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Subsidiary Guarantor&#148; </B>means EWC GP Corp., EWC LP Corp., EWC Aviation
Corp. and any other Subsidiary that hereafter becomes a party to the Subsidiary
Guaranty.


<P align="center" style="font-size: 10pt">Schedule&nbsp;B



<P align="center" style="font-size: 10pt">7
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Subsidiary Guaranty&#148; </B>is defined in Section&nbsp;1.2(a).


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;this Agreement&#148; or &#147;the Agreement&#148; </B>is defined in Section&nbsp;17.3.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Unrestricted Subsidiary&#148; </B>means any Subsidiary of the Parent, other than
the Company, that has been so designated by notice in writing given by the
Parent to the holders of the Notes.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;USA Patriot Act&#148; </B>means Public Law 107-56 of the United States of America,
United and Strengthening America by Providing Tools Required to Intercept and
Obstruct Terrorism (USA PATRIOT) Act of 2001.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Wholly Owned Restricted Subsidiary&#148; </B>means, at any time, any Restricted
Subsidiary 100% of all of the equity interests (except directors&#146; qualifying
shares) and voting interests of which are owned by any one or more of the
Parent and the Parent&#146;s other Wholly Owned Restricted Subsidiaries, including
the Company, at such time.


<P align="center" style="font-size: 10pt">Schedule&nbsp;B



<P align="center" style="font-size: 10pt">8
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="right" style="font-size: 10pt">SCHEDULE 5.4



<P align="center" style="font-size: 10pt"><B>SUBSIDIARIES AND OWNERSHIP OF SUBSIDIARY STOCK</B>



<P align="left" style="font-size: 10pt"><B>Subsidiaries</B>


<P align="left" style="font-size: 10pt; margin-left: 3%"><B>EWC GP Corp., a Delaware corporation</B>

<P align="left" style="font-size: 10pt; margin-left: 3%">100% of outstanding shares owned by Parent

<P align="left" style="font-size: 10pt; margin-left: 3%"><B>EWC LP Corp., a Texas corporation</B><BR>
100% of outstanding shares owned by Parent

<P align="left" style="font-size: 10pt; margin-left: 3%"><B>ENCORE WIRE LIMITED, a Texas limited partnership</B><BR>
1% general partnership interest owned by EWC GP Corp.<BR>
99% limited partnership interest owned by EWC LP Corp.

<P align="left" style="font-size: 10pt; margin-left: 3%"><B>EWC AVIATION Corp., a Texas corporation</B><BR>
100% of outstanding shares owned by Parent


<P align="left" style="font-size: 10pt"><B>Affiliates</B>


<P align="left" style="font-size: 10pt; margin-left: 3%">Capital Southwest Corporation<BR>
(beneficial owner of more than 15% of outstanding capital stock of Parent)


<P align="left" style="font-size: 10pt"><B>Directors and Officers of Parent and the Company</B>


<P align="left" style="font-size: 10pt; margin-left: 3%">Directors of Parent:<BR>
Vincent A Rego, Donald E. Courtney, Daniel L. Jones, Scott D. Weaver,<BR>
William R. Thomas, John H. Wilson, Joseph M. Brito, Thomas L. Cunningham

<P align="left" style="font-size: 10pt; margin-left: 3%">Senior Officers of Parent:<BR>
Vincent A. Rego, Chairman of the Board and CEO<BR>
Daniel L. Jones, President and COO<BR>
Frank J. Bilban, Vice President-Finance, CFO, Treasurer and Secretary<BR>
David K. Smith, Vice President-Operations

<P align="left" style="font-size: 10pt; margin-left: 3%">Directors of EWC GP Corp., general partner of the Company:<BR>
Vincent A. Rego, Daniel L. Jones, Frank J. Bilban

<P align="left" style="font-size: 10pt; margin-left: 3%">Senior Officers of EWC GP Corp., general partner of the Company:<BR>
Vincent A. Rego, Chairman of the Board and CEO<BR>
Daniel L. Jones, President and COO


<P align="center" style="font-size: 10pt">Schedule&nbsp;5.4



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt; margin-left: 3%">Frank J. Bilban, Vice President-Finance, CFO, Treasurer and Secretary<BR>
David K. Smith, Vice President-Operations


<P align="center" style="font-size: 10pt">Schedule&nbsp;5.4



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="right" style="font-size: 10pt">SCHEDULE 5.5



<P align="center" style="font-size: 10pt"><B>FINANCIAL STATEMENTS</B>



<P align="left" style="font-size: 10pt">Consolidated financial statements of the Parent contained in Parent&#146;s Form&nbsp;10-K
for the year ended December&nbsp;31, 2003.



<P align="left" style="font-size: 10pt">Consolidated financial statements of the Parent contained in Parent&#146;s Form&nbsp;10-Q
for the quarter ended March&nbsp;31, 2004.



<P align="left" style="font-size: 10pt">Consolidated financial statements of the Parent contained in Parent&#146;s Form&nbsp;10-Q
for the quarter ended June&nbsp;30, 2004.



<P align="left" style="font-size: 10pt">Financial statements of the Parent and its Subsidiaries contained in the
Offering Memorandum dated July&nbsp;2004.



<P align="center" style="font-size: 10pt">Schedule&nbsp;5.11



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="right" style="font-size: 10pt">SCHEDULE 5.14



<P align="center" style="font-size: 10pt"><B>USE OF PROCEEDS</B>



<P align="left" style="font-size: 10pt">The Company will apply all proceeds of the sale of the Notes to repay
outstanding Debt under that certain Financing Agreement dated August&nbsp;31, 1999
among the Company, Bank of America, N.A., as administrative agent, and the
lenders named therein, as amended.



<P align="center" style="font-size: 10pt">Schedule&nbsp;5.14



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="right" style="font-size: 10pt">SCHEDULE 5.15



<P align="center" style="font-size: 10pt"><B>DEBT</B>



<P align="left" style="font-size: 10pt">As of June&nbsp;30, 2004:



<P align="left" style="font-size: 10pt">$72,500,000 of outstanding principal Debt under Financing Agreement dated
August&nbsp;31, 1999 among the Company, Bank of America, N.A., as administrative
agent, and the lenders named therein, as amended, maturing 5/31/97, LIBOR plus.



<P align="left" style="font-size: 10pt">As of closing (after giving effect to application of proceeds of the Notes):



<P align="left" style="font-size: 10pt">Approximately $21,450,000 of outstanding principal Debt under the Credit
Agreement, maturing 8/31/2009, LIBOR plus.



<P align="center" style="font-size: 10pt">Schedule&nbsp;5.15



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="right" style="font-size: 10pt">EXHIBIT 1.1



<P align="center" style="font-size: 10pt"><B>&#091;FORM OF SERIES 2004-A SENIOR NOTE&#093;</B>



<P align="center" style="font-size: 10pt">ENCORE WIRE LIMITED



<P align="center" style="font-size: 10pt">5.27% Senior Note, Series&nbsp;2004-A<BR>
due August&nbsp;27, 2011


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%"></TD>
    <TD width="5%"></TD>
    <TD width="47%"></TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="left" valign="top">No.&nbsp;AR-&#091;<U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U>&#093;<BR>
$&#091;<U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U>&#093;
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&#091;Date&#093;<BR>
PPN: 29263@ AA 7</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOR VALUE RECEIVED, the undersigned, ENCORE WIRE LIMITED (herein called
the &#147;Company&#148;), a limited partnership organized and existing under the laws of
the State of Texas, promises to pay to
&#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#093;, or registered assigns, the
principal sum of
$&#091;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#093; on August&nbsp;27, 2011, with interest (computed
on the basis of a 360-day year of twelve 30-day months) (a)&nbsp;on the unpaid
balance thereof at the rate of 5.27% per annum from the date hereof, payable
semiannually, on February&nbsp;27 and August&nbsp;27 in each year, commencing with the
February&nbsp;27 or August&nbsp;27 next succeeding the date hereof, until the principal
hereof shall have become due and payable, and (b)&nbsp;to the extent permitted by
law on any overdue payment (including any overdue prepayment) of principal, any
overdue payment of interest and any overdue payment of any Make-Whole Amount
(as defined in the Note Purchase Agreement referred to below), payable
semiannually as aforesaid (or, at the option of the registered holder hereof,
on demand), at a rate per annum from time to time equal to the greater of (i)
7.27% or (ii)&nbsp;2% over the rate of interest publicly announced by Bank of
America, N.A. from time to time in Chicago, Illinois as its &#147;base&#148; or &#147;prime&#148;
rate.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at the principal office of Bank of America, N.A. in Chicago, Illinois
or at such other place as the Company shall have designated by written notice
to the holder of this Note as provided in the Note Purchase Agreement referred
to below.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Note is one of Senior Notes (herein called the &#147;Notes&#148;) issued
pursuant to a Note Purchase Agreement dated as of August&nbsp;1, 2004 (as from time
to time amended, the &#147;Note Purchase Agreement&#148;), between the Company, Encore
Wire Corporation and the respective Purchasers named therein and is entitled to
the benefits thereof. Each holder of this Note will be deemed, by its
acceptance hereof, (i)&nbsp;to have agreed to the confidentiality provisions set
forth in Section&nbsp;20 of the Note Purchase Agreement, (ii)&nbsp;to have made the
representation set forth in Section&nbsp;6.2 of the Note Purchase Agreement and
(iii)&nbsp;to have agreed to the restriction on transfer of this Note set forth in
Section&nbsp;13.3 of the Note Purchase Agreement.


<P align="center" style="font-size: 10pt">Exhibit&nbsp;1.1



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Note is a registered Note and, as provided in the Note Purchase
Agreement, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder&#146;s attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Note is subject to optional prepayment, in whole or from time to time
in part, at the times and on the terms specified in the Note Purchase Agreement
but not otherwise.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If an Event of Default, as defined in the Note Purchase Agreement, occurs
and is continuing, the principal of this Note may be declared or otherwise
become due and payable in the manner, at the price (including any applicable
Make-Whole Amount) and with the effect provided in the Note Purchase Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of the principal of, and interest and Make-Whole Amount, if any,
on this Note, and all other amounts due under the Note Purchase Agreement, is
guaranteed pursuant to the terms of Guaranties dated as of August&nbsp;1, 2004 of
the Parent and certain Subsidiaries of the Company.*


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Note shall be construed and enforced in accordance with, and the
rights of the parties shall be governed by, the law of the State of Illinois
excluding choice-of-law principles of the law of such State that would require
the application of the laws of a jurisdiction other than such State.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="34%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">ENCORE WIRE LIMITED</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">By its General Partner,</TD>
</TR>

<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">GWC GP, Inc.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>

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</TABLE>
</DIV>




<P>
<HR size="1" width="18%" align="left" noshade>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top">
    <TD width="1%" nowrap align="right">*</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="96%">This paragraph must be modified at such time as there are no Subsidiary
Guarantors.</TD>
</TR>

</TABLE>



<P align="center" style="font-size: 10pt">Exhibit&nbsp;1.1



<P align="center" style="font-size: 10pt">2
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="right" style="font-size: 10pt">EXHIBIT 1.2(a)



<P align="center" style="font-size: 10pt"><B>PARENT GUARANTY</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS GUARANTY (this &#147;Guaranty&#148;) dated as of August&nbsp;1, 2004 is made by
Encore Wire Corporation, a Delaware corporation (the &#147;Guarantor&#148;), in favor of
the holders from time to time of the Notes hereinafter referred to, including
each purchaser named in the Note Purchase Agreement hereinafter referred to,
and their respective successors and assigns (collectively, the &#147;Holders&#148; and
each individually, a &#147;Holder&#148;).


<P align="center" style="font-size: 10pt">W I T N E S S E T H:



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Encore Wire Limited, a Texas limited partnership (the &#147;Company&#148;),
the Guarantor and the initial Holders have entered into a Note Purchase
Agreement dated as of August&nbsp;1, 2004 (the Note Purchase Agreement as amended,
supplemented, restated or otherwise modified from time to time in accordance
with its terms and in effect, the &#147;Note Purchase Agreement&#148;);


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Note Purchase Agreement provides for the issuance by the
Company of $45,000,000 aggregate principal amount of Notes (as defined in the
Note Purchase Agreement) in series;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Company is a Wholly Owned Restricted Subsidiary of the
Guarantor and the Guarantor will derive substantial benefits from the purchase
by the Holders of the Company&#146;s Notes;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, it is a condition precedent to the obligation of the Holders to
purchase the Notes that the Guarantor shall have executed and delivered this
Guaranty to the Holders; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Guarantor desires to execute and deliver this Guaranty to
satisfy the conditions described in the preceding paragraph;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the premises and other benefits to the
Guarantor, and of the purchase of the Company&#146;s Notes by the Holders, and for
other good and valuable consideration, the receipt and sufficiency of which are
acknowledged, the Guarantor makes this Guaranty as follows:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1. Definitions. Any capitalized terms not otherwise herein
defined shall have the meanings ascribed to them in the Note Purchase
Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2. Guaranty. The Guarantor unconditionally and irrevocably
guarantees to the Holders the due, prompt and complete payment by the Company
of the principal of, Make-Whole Amount, if any, and interest on, and each other
amount due under, the Notes or the Note


<P align="center" style="font-size: 10pt">Exhibit&nbsp;1.2(a)



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">Purchase Agreement, when and as the same shall become due and payable (whether
at stated maturity or by required or optional prepayment or by declaration or
otherwise) in accordance with the terms of the Notes and the Note Purchase
Agreement (the Notes and the Note Purchase Agreement being sometimes
hereinafter collectively referred to as the &#147;Note Documents&#148; and the amounts
payable by the Company under the Note Documents, and all other monetary
obligations of the Company thereunder (including any reasonable attorneys&#146; fees
and expenses), being sometimes collectively hereinafter referred to as the
&#147;Obligations&#148;). This Guaranty is a guaranty of payment and not just of
collectibility and is in no way conditioned or contingent upon any attempt to
collect from the Company or upon any other event, contingency or circumstance
whatsoever. If for any reason whatsoever the Company shall fail or be unable
duly, punctually and fully to pay such amounts as and when the same shall
become due and payable, the Guarantor, without demand, presentment, protest or
notice of any kind, will forthwith pay or cause to be paid such amounts to the
Holders under the terms of such Note Documents, in lawful money of the United
States, at the place specified in the Note Purchase Agreement, or perform or
comply with the same or cause the same to be performed or complied with,
together with interest (to the extent provided for under such Note Documents)
on any amount due and owing from the Company. The Guarantor, promptly after
demand, will pay to the Holders the reasonable costs and expenses of collecting
such amounts or otherwise enforcing this Guaranty, including, without
limitation, the reasonable fees and expenses of counsel.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3. Guarantor&#146;s Obligations Unconditional. The obligations of the
Guarantor under this Guaranty shall be primary, absolute and unconditional
obligations of the Guarantor, shall not be subject to any counterclaim,
set-off, deduction, diminution, abatement, recoupment, suspension, deferment,
reduction or defense based upon any claim the Guarantor or any other person may
have against the Company or any other person, and to the full extent permitted
by applicable law shall remain in full force and effect without regard to, and
shall not be released, discharged or in any way affected by, any circumstance
or condition whatsoever (whether or not the Guarantor or the Company shall have
any knowledge or notice thereof), including:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any termination, amendment or modification of or deletion from
or addition or supplement to or other change in any of the Note Documents
or any other instrument or agreement applicable to any of the parties to
any of the Note Documents;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any furnishing or acceptance of any security, or any release of
any security, for the Obligations, or the failure of any security or the
failure of any person to perfect any interest in any collateral;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any failure, omission or delay on the part of the Company to
conform or comply with any term of any of the Note Documents or any other
instrument or agreement referred to in paragraph (a)&nbsp;above, including,
without limitation, failure to give notice to the Guarantor of the
occurrence of a &#147;Default&#148; or an &#147;Event of Default&#148; under any Note
Document;


<P align="center" style="font-size: 10pt">Exhibit&nbsp;1.2(a)



<P align="center" style="font-size: 10pt">2
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">





<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any waiver of the payment, performance or observance of any of
the obligations, conditions, covenants or agreements contained in any
Note Document, or any other waiver, consent, extension, indulgence,
compromise, settlement, release or other action or inaction under or in
respect of any of the Note Documents or any other instrument or agreement
referred to in paragraph (a)&nbsp;above or any obligation or liability of the
Company, or any exercise or non-exercise of any right, remedy, power or
privilege under or in respect of any such instrument or agreement or any
such obligation or liability;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any failure, omission or delay on the part of any of the Holders
to enforce, assert or exercise any right, power or remedy conferred on
such Holder in this Guaranty, or any such failure, omission or delay on
the part of such Holder in connection with any Note Document, or any
other action on the part of such Holder;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any voluntary or involuntary bankruptcy, insolvency,
reorganization, arrangement, readjustment, assignment for the benefit of
creditors, composition, receivership, conservatorship, custodianship,
liquidation, marshaling of assets and liabilities or similar proceedings
with respect to the Company, the Guarantor or to any other person or any
of their respective properties or creditors, or any action taken by any
trustee or receiver or by any court in any such proceeding;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any discharge, termination, cancellation, frustration,
irregularity, invalidity or unenforceability, in whole or in part, of any
of the Note Documents or any other agreement or instrument referred to in
paragraph (a)&nbsp;above or any term hereof;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any merger or consolidation of the Company or the Guarantor into
or with any other corporation, or any sale, lease or transfer of any of
the assets of the Company or the Guarantor to any other person;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any change in the ownership of any shares of capital stock of
the Company or any change in the corporate relationship between the
Company and the Guarantor, or any termination of such relationship;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any release or discharge, by operation of law, of any other
guarantor from the performance or observance of any obligation, covenant
or agreement contained in any other guarantee of the Note Documents or
the Obligations; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) any other occurrence, circumstance, happening or event
whatsoever, whether similar or dissimilar to the foregoing, whether
foreseen or unforeseen, and any other circumstance which might otherwise
constitute a legal or equitable defense or discharge of the liabilities
of a guarantor or surety or which might otherwise limit recourse against
the Guarantor.


<P align="center" style="font-size: 10pt">Exhibit&nbsp;1.2(a)



<P align="center" style="font-size: 10pt">3
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4. Full Recourse Obligations. The obligations of the Guarantor
set forth herein constitute the full recourse obligations of the Guarantor
enforceable against it to the full extent of all its assets and properties.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 5. Waiver. The Guarantor unconditionally waives, to the extent
permitted by applicable law, (a)&nbsp;notice of any of the matters referred to in
Section&nbsp;3, (b)&nbsp;notice to the Guarantor of the incurrence of any of the
Obligations, notice to the Guarantor or the Company of any breach or default by
the Company with respect to any of the Obligations or any other notice that may
be required, by statute, rule of law or otherwise, to preserve any rights of
the Holders against the Guarantor, (c)&nbsp;presentment to or demand of payment from
the Company or the Guarantor with respect to any amount due under any Note
Document or protest for nonpayment or dishonor, (d)&nbsp;any right to the
enforcement, assertion or exercise by any of the Holders of any right, power,
privilege or remedy conferred in the Note Purchase Agreement or any other Note
Document or otherwise, (e)&nbsp;any requirement of diligence on the part of any of
the Holders, (f)&nbsp;any requirement to exhaust any remedies or to mitigate the
damages resulting from any default under any Note Document, (g)&nbsp;any notice of
any sale, transfer or other disposition by any of the Holders of any right,
title to or interest in the Note Purchase Agreement or in any other Note
Document and (h)&nbsp;any other circumstance whatsoever which might otherwise
constitute a legal or equitable discharge, release or defense of a guarantor or
surety or which might otherwise limit recourse against the Guarantor.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6. Subrogation, Contribution, Reimbursement or Indemnity. Until
one year and one day after all Obligations have been paid in full, the
Guarantor agrees not to take any action pursuant to any rights which may have
arisen in connection with this Guaranty to be subrogated to any of the rights
(whether contractual, under the United States Bankruptcy Code, as amended,
including section 509 thereof, under common law or otherwise) of any of the
Holders against the Company or against any collateral security or guaranty or
right of offset held by the Holders for the payment of the Obligations. Until
one year and one day after all Obligations have been paid in full, the
Guarantor agrees not to take any action pursuant to any contractual, common
law, statutory or other rights of reimbursement, contribution, exoneration or
indemnity (or any similar right) from or against the Company which may have
arisen in connection with this Guaranty. So long as the Obligations remain, if
any amount shall be paid by or on behalf of the Company to the Guarantor on
account of any of the rights waived in this paragraph, such amount shall be
held by the Guarantor in trust, segregated from other funds of the Guarantor,
and shall, forthwith upon receipt by the Guarantor, be turned over to the
Holders (duly endorsed by the Guarantor to the Holders, if required), to be
applied against the Obligations, whether matured or unmatured, in such order as
the Holders may determine. The provisions of this paragraph shall survive the
term of this Guaranty and the payment in full of the Obligations.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 7. Effect of Bankruptcy Proceedings, etc. This Guaranty shall
continue to be effective or be automatically reinstated, as the case may be, if
at any time payment, in whole or in part, of any of the sums due to any of the
Holders pursuant to the terms of the Note Purchase Agreement or any other Note
Document is rescinded or must otherwise be restored or returned by


<P align="center" style="font-size: 10pt">Exhibit&nbsp;1.2(a)



<P align="center" style="font-size: 10pt">4
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">the Holder upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of the Company or any other person, or upon or as a result of
the appointment of a custodian, receiver, trustee or other officer with similar
powers with respect to the Company or other person or any substantial part of
its property, or otherwise, all as though such payment had not been made. If
an event permitting the acceleration of the maturity of the principal amount of
the Notes shall at any time have occurred and be continuing, and such
acceleration shall at such time be prevented by reason of the pendency against
the Company or any other person of a case or proceeding under a bankruptcy or
insolvency law, the Guarantor agrees that, for purposes of this Guaranty and
its obligations hereunder, the maturity of the principal amount of the Notes
and all other Obligations shall be deemed to have been accelerated with the
same effect as if any Holder had accelerated the same in accordance with the
terms of the Note Purchase Agreement or other applicable Note Document, and the
Guarantor shall forthwith pay such principal amount, Make-Whole Amount, if any,
and interest thereon and any other amounts guaranteed hereunder without further
notice or demand.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8. Term of Agreement. This Guaranty and all guaranties,
covenants and agreements of the Guarantor contained herein shall continue in
full force and effect and shall not be discharged until such time as all of the
Obligations shall be paid and performed in full and all of the agreements of
the Guarantor hereunder shall be duly paid and performed in full.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9. Notices. All notices and communications provided for
hereunder shall be in writing and sent by telecopy if the sender on the same
day sends a confirming copy of such notice by a recognized overnight delivery
service (charges prepaid), or by registered or certified mail with return
receipt requested (postage prepaid), or by a recognized overnight delivery
service (with charges prepaid) (a)&nbsp;if to the Company or any Holder at the
address set forth in the Note Purchase Agreement or (b)&nbsp;if to the Guarantor, in
care of the Company at the Company&#146;s address set forth in the Note Purchase
Agreement, or in each case at such other address as the Company, any Holder or
such Guarantor shall from time to time designate in writing to the other
parties. Any notice so addressed shall be deemed to be given when actually
received.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 10. Survival. All warranties, representations and covenants made
by the Guarantor herein or in any certificate or other instrument delivered by
it or on its behalf hereunder shall be considered to have been relied upon by
the Holders and shall survive the execution and delivery of this Guaranty,
regardless of any investigation made by any of the Holders. All statements in
any such certificate or other instrument shall constitute warranties and
representations by such Guarantor hereunder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>SECTION 11. Submission to Jurisdiction. Any litigation based hereon, or
arising out of, under or in connection with this Guaranty, may be brought and
maintained in the courts of the State of Illinois or in the United States
District Court for the Northern District of Illinois. The Guarantor expressly
and irrevocably submits to the jurisdiction of the courts of the State of
Illinois and of the United States District Court for the Northern District of
Illinois for the purpose of any such litigation as set forth above. The
Guarantor further irrevocably consents to the service of process by registered
mail, postage prepaid,</B>


<P align="center" style="font-size: 10pt">Exhibit&nbsp;1.2(a)



<P align="center" style="font-size: 10pt">5
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt"><B>to the address specified in Section&nbsp;9 or by personal service within or without
the State of Illinois. The Guarantor expressly and irrevocably waives, to the
fullest extent permitted by law, any objection that it may now or hereafter
have to the laying of venue of any such litigation brought in any such court
referred to above and any claim that any such litigation has been brought in an
inconvenient forum.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>SECTION 12. Waiver of Jury Trial. The Guarantor waives any right to a
trial by jury in any action or proceeding to enforce or defend any rights under
this Guaranty or under any amendment, instrument, document or agreement
delivered or that may in the future be delivered in connection herewith and
agrees that any such action or proceeding shall be tried before a court and not
before a jury.</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 13. Miscellaneous. Any provision of this Guaranty that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction. To the extent
permitted by applicable law, the Guarantor hereby waives any provision of law
that renders any provisions hereof prohibited or unenforceable in any respect.
The terms of this Guaranty shall be binding upon, and inure to the benefit of,
the Guarantor and the Holders and their respective successors and assigns. No
term or provision of this Guaranty may be changed, waived, discharged or
terminated orally, but only by an instrument in writing signed by the Guarantor
and the Required Holders. The section and paragraph headings in this Guaranty
and the table of contents are for convenience of reference only and shall not
modify, define, expand or limit any of the terms or provisions hereof, and all
references herein to numbered sections, unless otherwise indicated, are to
sections in this Guaranty. This Guaranty shall in all respects be governed by,
and construed in accordance with, the laws of the State of Illinois excluding
choice-of-law principles of the law of such State that would require the
application of the laws of a jurisdiction other than such State.


<P align="center" style="font-size: 10pt">Exhibit&nbsp;1.2(a)



<P align="center" style="font-size: 10pt">6
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the Guarantor has caused this Guaranty to be duly
executed as of the day and year first above written.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="34%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">ENCORE WIRE CORPORATION</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">Exhibit&nbsp;1.2(a)



<P align="center" style="font-size: 10pt">7
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="right" style="font-size: 10pt">EXHIBIT 1.2(b)



<P align="center" style="font-size: 10pt"><B>&#091;FORM OF SUBSIDIARY GUARANTY&#093;</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS GUARANTY (this &#147;Guaranty&#148;) dated as of August&nbsp;1, 2004 is made by the
undersigned (each, a &#147;Guarantor&#148;), in favor of the holders from time to time of
the Notes hereinafter referred to, including each purchaser named in the Note
Purchase Agreement hereinafter referred to, and their respective successors and
assigns (collectively, the &#147;Holders&#148; and each individually, a &#147;Holder&#148;).


<P align="center" style="font-size: 10pt">W I T N E S S E T H:



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Encore Wire Limited, a Texas limited partnership (the &#147;Company&#148;),
Encore Wire Corporation, a Delaware corporation (the &#147;Parent&#148;), and the initial
Holders have entered into a Note Purchase Agreement dated as of August&nbsp;1, 2004
(the Note Purchase Agreement as amended, supplemented, restated or otherwise
modified from time to time in accordance with its terms and in effect, the
&#147;Note Purchase Agreement&#148;);


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Note Purchase Agreement provides for the issuance by the
Company of $45,000,000 aggregate principal amount of Notes (as defined in the
Note Purchase Agreement);


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Parent owns, directly or indirectly, all of the issued and
outstanding capital stock or partnership interests of each Guarantor and, by
virtue of such ownership and otherwise, each Guarantor will derive substantial
benefits from the purchase by the Holders of the Company&#146;s Notes;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, it is a condition precedent to the obligation of the Holders to
purchase the Notes that each Guarantor shall have executed and delivered this
Guaranty to the Holders; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, each Guarantor desires to execute and deliver this Guaranty to
satisfy the conditions described in the preceding paragraph;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the premises and other benefits to
each Guarantor, and of the purchase of the Company&#146;s Notes by the Holders, and
for other good and valuable consideration, the receipt and sufficiency of which
are acknowledged, each Guarantor makes this Guaranty as follows:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 1. Definitions. Any capitalized terms not otherwise herein
defined shall have the meanings attributed to them in the Note Purchase
Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 2. Guaranty. Each Guarantor, jointly and severally with each
other Guarantor, unconditionally and irrevocably guarantees to the Holders the
due, prompt and complete payment by the Company of the principal of, Make-Whole
Amount, if any, and interest on, and each other amount due under, the Notes or
the Note Purchase Agreement, when and as the same shall become due and payable
(whether at stated maturity or by required or optional prepayment or by


<P align="center" style="font-size: 10pt">Exhibit&nbsp;1.2(b)



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">declaration or otherwise) in accordance with the terms of the Notes and the
Note Purchase Agreement (the Notes and the Note Purchase Agreement being
sometimes hereinafter collectively referred to as the &#147;Note Documents&#148; and the
amounts payable by the Company under the Note Documents, and all other monetary
obligations of the Company thereunder (including reasonable attorneys&#146; fees and
expenses), being sometimes collectively hereinafter referred to as the
&#147;Obligations&#148;). This Guaranty is a guaranty of payment and not just of
collectibility and is in no way conditioned or contingent upon any attempt to
collect from the Company or upon any other event, contingency or circumstance
whatsoever. If for any reason whatsoever the Company shall fail or be unable
duly, punctually and fully to pay such amounts as and when the same shall
become due and payable, each Guarantor, without demand, presentment, protest or
notice of any kind, will forthwith pay or cause to be paid such amounts to the
Holders under the terms of such Note Documents, in lawful money of the United
States, at the place specified in the Note Purchase Agreement, or perform or
comply with the same or cause the same to be performed or complied with,
together with interest (to the extent provided for under such Note Documents)
on any amount due and owing from the Company. Each Guarantor, promptly after
demand, will pay to the Holders the reasonable costs and expenses of collecting
such amounts or otherwise enforcing this Guaranty, including, without
limitation, the reasonable fees and expenses of counsel. Notwithstanding the
foregoing, the right of recovery against each Guarantor under this Guaranty is
limited to the extent it is judicially determined with respect to any Guarantor
that entering into this Guaranty would violate Section&nbsp;548 of the United States
Bankruptcy Code or any comparable provisions of any state law, in which case
such Guarantor shall be liable under this Guaranty only for amounts aggregating
up to the largest amount that would not render such Guarantor&#146;s obligations
hereunder subject to avoidance under Section&nbsp;548 of the United States
Bankruptcy Code or any comparable provisions of any state law.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 3. Guarantor&#146;s Obligations Unconditional. The obligations of
each Guarantor under this Guaranty shall be primary, absolute and unconditional
obligations of each Guarantor, shall not be subject to any counterclaim,
set-off, deduction, diminution, abatement, recoupment, suspension, deferment,
reduction or defense based upon any claim each Guarantor or any other person
may have against the Company or any other person, and to the full extent
permitted by applicable law shall remain in full force and effect without
regard to, and shall not be released, discharged or in any way affected by, any
circumstance or condition whatsoever (whether or not each Guarantor or the
Company shall have any knowledge or notice thereof), including:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any termination, amendment or modification of or deletion from
or addition or supplement to or other change in any of the Note Documents
or any other instrument or agreement applicable to any of the parties to
any of the Note Documents;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any furnishing or acceptance of any security, or any release of
any security, for the Obligations, or the failure of any security or the
failure of any person to perfect any interest in any collateral;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any failure, omission or delay on the part of the Company or the
Parent to conform or comply with any term of any of the Note Documents or
any other instrument


<P align="center" style="font-size: 10pt">Exhibit&nbsp;1.2(b)



<P align="center" style="font-size: 10pt">2
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">





<P align="left" style="margin-left:3%; font-size: 10pt">or agreement referred to in paragraph (a)&nbsp;above, including, without
limitation, failure to give notice to any Guarantor of the occurrence of
a &#147;Default&#148; or an &#147;Event of Default&#148; under any Note Document;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any waiver of the payment, performance or observance of any of
the obligations, conditions, covenants or agreements contained in any
Note Document, or any other waiver, consent, extension, indulgence,
compromise, settlement, release or other action or inaction under or in
respect of any of the Note Documents or any other instrument or agreement
referred to in paragraph (a)&nbsp;above or any obligation or liability of the
Company or the Parent, or any exercise or non-exercise of any right,
remedy, power or privilege under or in respect of any such instrument or
agreement or any such obligation or liability;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any failure, omission or delay on the part of any of the Holders
to enforce, assert or exercise any right, power or remedy conferred on
such Holder in this Guaranty, or any such failure, omission or delay on
the part of such Holder in connection with any Note Document, or any
other action on the part of such Holder;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any voluntary or involuntary bankruptcy, insolvency,
reorganization, arrangement, readjustment, assignment for the benefit of
creditors, composition, receivership, conservatorship, custodianship,
liquidation, marshaling of assets and liabilities or similar proceedings
with respect to the Company, the Parent, any Guarantor or to any other
person or any of their respective properties or creditors, or any action
taken by any trustee or receiver or by any court in any such proceeding;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any discharge, termination, cancellation, frustration,
irregularity, invalidity or unenforceability, in whole or in part, of any
of the Note Documents or any other agreement or instrument referred to in
paragraph (a)&nbsp;above or any term hereof;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any merger or consolidation of the Company or the Parent or any
Guarantor into or with any other corporation, or any sale, lease or
transfer of any of the assets of the Company or the Parent or any
Guarantor to any other person;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any change in the ownership of any shares of capital stock of
the Company or the Parent or any change in the corporate relationship
between the Company or the Parent and any Guarantor, or any termination
of such relationship;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any release or discharge, by operation of law, of any other
Guarantor from the performance or observance of any obligation, covenant
or agreement contained in this Guaranty; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) any other occurrence, circumstance, happening or event
whatsoever, whether similar or dissimilar to the foregoing, whether
foreseen or unforeseen, and any other circumstance which might otherwise
constitute a legal or equitable defense or


<P align="center" style="font-size: 10pt">Exhibit&nbsp;1.2(b)



<P align="center" style="font-size: 10pt">3
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">





<P align="left" style="margin-left:3%; font-size: 10pt">discharge of the liabilities of a guarantor or surety or which might
otherwise limit recourse against any Guarantor.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 4. Full Recourse Obligations. The obligations of each Guarantor
set forth herein constitute the full recourse obligations of such Guarantor
enforceable against it to the full extent of all its assets and properties.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 5. Waiver. Each Guarantor unconditionally waives, to the extent
permitted by applicable law, (a)&nbsp;notice of any of the matters referred to in
Section&nbsp;3, (b)&nbsp;notice to such Guarantor of the incurrence of any of the
Obligations, notice to such Guarantor or the Company of any breach or default
by such Company with respect to any of the Obligations or any other notice that
may be required, by statute, rule of law or otherwise, to preserve any rights
of the Holders against such Guarantor, (c)&nbsp;presentment to or demand of payment
from the Company or the Guarantor with respect to any amount due under any Note
Document or protest for nonpayment or dishonor, (d)&nbsp;any right to the
enforcement, assertion or exercise by any of the Holders of any right, power,
privilege or remedy conferred in the Note Purchase Agreement or any other Note
Document or otherwise, (e)&nbsp;any requirement of diligence on the part of any of
the Holders, (f)&nbsp;any requirement to exhaust any remedies or to mitigate the
damages resulting from any default under any Note Document, (g)&nbsp;any notice of
any sale, transfer or other disposition by any of the Holders of any right,
title to or interest in the Note Purchase Agreement or in any other Note
Document and (h)&nbsp;any other circumstance whatsoever which might otherwise
constitute a legal or equitable discharge, release or defense of a guarantor or
surety or which might otherwise limit recourse against such Guarantor.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 6. Subrogation, Contribution, Reimbursement or Indemnity. Until
one year and one day after all Obligations have been paid in full, each
Guarantor agrees not to take any action pursuant to any rights which may have
arisen in connection with this Guaranty to be subrogated to any of the rights
(whether contractual, under the United States Bankruptcy Code, as amended,
including Section&nbsp;509 thereof, under common law or otherwise) of any of the
Holders against the Company or against any collateral security or guaranty or
right of offset held by the Holders for the payment of the Obligations. Until
one year and one day after all Obligations have been paid in full, each
Guarantor agrees not to take any action pursuant to any contractual, common
law, statutory or other rights of reimbursement, contribution, exoneration or
indemnity (or any similar right) from or against the Company which may have
arisen in connection with this Guaranty. So long as the Obligations remain, if
any amount shall be paid by or on behalf of the Company to any Guarantor on
account of any of the rights waived in this paragraph, such amount shall be
held by such Guarantor in trust, segregated from other funds of such Guarantor,
and shall, forthwith upon receipt by such Guarantor, be turned over to the
Holders (duly endorsed by such Guarantor to the Holders, if required), to be
applied against the Obligations, whether matured or unmatured, in such order as
the Holders may determine. The provisions of this paragraph shall survive the
term of this Guaranty and the payment in full of the Obligations.


<P align="center" style="font-size: 10pt">Exhibit&nbsp;1.2(b)



<P align="center" style="font-size: 10pt">4
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 7. Effect of Bankruptcy Proceedings, etc. This Guaranty shall
continue to be effective or be automatically reinstated, as the case may be, if
at any time payment, in whole or in part, of any of the sums due to any of the
Holders pursuant to the terms of the Note Purchase Agreement or any other Note
Document is rescinded or must otherwise be restored or returned by such Holder
upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of
the Company or any other person, or upon or as a result of the appointment of a
custodian, receiver, trustee or other officer with similar powers with respect
to the Company or other person or any substantial part of its property, or
otherwise, all as though such payment had not been made. If an event
permitting the acceleration of the maturity of the principal amount of the
Notes shall at any time have occurred and be continuing, and such acceleration
shall at such time be prevented by reason of the pendency against the Company
or any other person of a case or proceeding under a bankruptcy or insolvency
law, each Guarantor agrees that, for purposes of this Guaranty and its
obligations hereunder, the maturity of the principal amount of the Notes and
all other Obligations shall be deemed to have been accelerated with the same
effect as if any Holder had accelerated the same in accordance with the terms
of the Note Purchase Agreement or other applicable Note Document, and such
Guarantor shall forthwith pay such principal amount, Make-Whole Amount, if any,
and interest thereon and any other amounts guaranteed hereunder without further
notice or demand.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 8. Term of Agreement. This Guaranty and all guaranties,
covenants and agreements of each Guarantor contained herein shall continue in
full force and effect and shall not be discharged until the earlier to occur of
(i)&nbsp;such time as all of the Obligations shall be paid and performed in full and
all of the agreements of such Guarantor hereunder shall be duly paid and
performed in full and (ii)&nbsp;such Guarantor is released by the Holders pursuant
to Section&nbsp;1.2(b) of the Note Purchase Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 9. Representations and Warranties. Each Guarantor represents and
warrants to each Holder that:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) such Guarantor is duly organized, validly existing and in good
standing under the laws of its jurisdiction of organization and has the
power and authority to own or hold under lease the properties it purports
to own or hold under lease and to transact the business it transacts and
proposes to transact,;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such Guarantor has the power and authority to execute and
deliver this Guaranty and to perform the provisions hereof, and this
Guaranty has been duly authorized by all necessary action on the part of
such Guarantor;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) this Guaranty constitutes the legal, valid and binding
obligation of such Guarantor enforceable against such Guarantor in
accordance with its terms, except as such enforceability may be limited
by (i)&nbsp;applicable bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium or other similar laws affecting the
enforcement of creditors&#146; rights generally and (ii)&nbsp;general principles of
equity (regardless of whether such enforceability is considered in a
proceeding in equity or at law);


<P align="center" style="font-size: 10pt">Exhibit&nbsp;1.2(b)



<P align="center" style="font-size: 10pt">5
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">





<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the execution, delivery and performance of this Guaranty will
not (i)&nbsp;contravene, result in any breach of, or constitute a default
under, or result in the creation of any Lien in respect of any property
of such Guarantor under, any agreement, or corporate charter or by-laws
to which such Guarantor is bound or by which such Guarantor or any of its
properties may be bound or affected, (ii)&nbsp;conflict with or result in a
breach of any of the terms, conditions or provisions of any order,
judgment, decree, or ruling of any court, arbitrator or Governmental
Authority applicable to such Subsidiary Guarantor or (iii)&nbsp;violate any
provision of any statute or other rule or regulation of any Governmental
Authority applicable to such Guarantor;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) except as disclosed in Section&nbsp;5.7 to the Note Purchase
Agreement, no consent, approval or authorization of, or registration,
filing or declaration with, any Governmental Authority is required in
connection with the execution, delivery or performance by such Guarantor
of this Guaranty, and all such consents, approvals, authorizations,
registrations, filings or declarations listed in Schedule&nbsp;5.7 have been
obtained or made;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) except as disclosed in Section&nbsp;5.8 of the Note Purchase
Agreement, there are no actions, suits or proceedings pending or, to the
knowledge of such Guarantor, threatened against or affecting such
Guarantor, or any property of such Guarantor, in any court or before any
arbitrator of any kind or before or by any Governmental Authority that,
individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) after giving effect to the transactions contemplated in the Note
Purchase Agreement and after giving due consideration to any rights of
contribution (i)&nbsp;such Guarantor has received fair consideration and
reasonably equivalent value for the incurrence of its obligations
hereunder, (ii)&nbsp;the fair value of the assets of such Guarantor (both at
fair valuation and at present fair saleable value) exceeds its
liabilities, (iii)&nbsp;such Guarantor is able to and expects to be able to
pay its debts as they mature, and (iv)&nbsp;such Guarantor has capital
sufficient to carry on its business as conducted and as proposed to be
conducted.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 10. Notices. All notices and communications provided for
hereunder shall be in writing and sent by telecopy if the sender on the same
day sends a confirming copy of such notice by a recognized overnight delivery
service (charges prepaid), or by registered or certified mail with return
receipt requested (postage prepaid), or by a recognized overnight delivery
service (with charges prepaid) (a)&nbsp;if to the Company or any Holder at the
address set forth in the Note Purchase Agreement or (b)&nbsp;if to a Guarantor, in
care of the Company at the Company&#146;s address set forth in the Note Purchase
Agreement, or in each case at such other address as the Company, any Holder or
such Guarantor shall from time to time designate in writing to the other
parties. Any notice so addressed shall be deemed to be given when actually
received.


<P align="center" style="font-size: 10pt">Exhibit&nbsp;1.2(b)



<P align="center" style="font-size: 10pt">6
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 11. Survival. All warranties, representations and covenants made
by each Guarantor herein or in any certificate or other instrument delivered by
it or on its behalf hereunder shall be considered to have been relied upon by
the Holders and shall survive the execution and delivery of this Guaranty,
regardless of any investigation made by any of the Holders. All statements in
any such certificate or other instrument shall constitute warranties and
representations by such Guarantor hereunder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>SECTION 12. Submission to Jurisdiction. Any litigation based hereon, or
arising out of, under or in connection with this Guaranty, may be brought and
maintained in the courts of the State of Illinois or in the United States
District Court for the Northern District of Illinois. Each Guarantor expressly
and irrevocably submits to the jurisdiction of the courts of the State of
Illinois and of the United States District Court for the Northern District of
Illinois for the purpose of any such litigation as set forth above. Each
Guarantor further irrevocably consents to the service of process by registered
mail, postage prepaid, to the address specified in Section&nbsp;9 or by personal
service within or without the State of Illinois. Each Guarantor expressly and
irrevocably waives, to the fullest extent permitted by law, any objection that
it may now or hereafter have to the laying of venue of any such litigation
brought in any such court referred to above and any claim that any such
litigation has been brought in an inconvenient forum.</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>SECTON 13. Waiver of Jury Trial. Each Guarantor waives any right to a
trial by jury in any action or proceeding to enforce or defend any rights under
this Guaranty or under any amendment, instrument, document or agreement
delivered or that may in the future be delivered in connection herewith and
agrees that any such action or proceeding shall be tried before a court and not
before a jury.</B>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECTION 14. Miscellaneous. Any provision of this Guaranty which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction. To the extent
permitted by applicable law, each Guarantor hereby waives any provision of law
that renders any provisions hereof prohibited or unenforceable in any respect.
The terms of this Guaranty shall be binding upon, and inure to the benefit of,
each Guarantor and the Holders and their respective successors and assigns. No
term or provision of this Guaranty may be changed, waived, discharged or
terminated orally, but only by an instrument in writing signed by each
Guarantor and the Required Holders. The section and paragraph headings in this
Guaranty are for convenience of reference only and shall not modify, define,
expand or limit any of the terms or provisions hereof, and all references
herein to numbered sections, unless otherwise indicated, are to sections in
this Guaranty. This Guaranty shall in all respects be governed by, and
construed in accordance with, the laws of the State of Illinois, excluding
choice-of-law principles of the law of such State that would require the
application of the laws of a jurisdiction other than such State.


<P align="center" style="font-size: 10pt">Exhibit&nbsp;1.2(b)



<P align="center" style="font-size: 10pt">7
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, each Guarantor has caused this Guaranty to be duly
executed as of the day and year first above written.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="34%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">EWC GP Corp.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">EWC LP Corp.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">EWC AVIATION Corp.</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">Exhibit&nbsp;1.2(b)



<P align="center" style="font-size: 10pt">8
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="center" style="font-size: 10pt">FORM OF JOINDER TO SUBSIDIARY GUARANTY



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned (the &#147;Guarantor&#148;), joins in the Subsidiary Guaranty dated
as of August&nbsp;1, 2004 from the Guarantors named therein in favor of the Holders,
as defined therein, and agrees to be bound by all of the terms thereof and
represents and warrants to the Holders that:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) such Guarantor is duly organized, validly existing and in good
standing under the laws of its jurisdiction of organization and has the
power and authority to own or hold under lease the properties it purports
to own or hold under lease and to transact the business it transacts and
proposes to transact,;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such Guarantor has the power and authority to execute and
deliver this Guaranty and to perform the provisions hereof, and this
Guaranty has been duly authorized by all necessary action on the part of
such Guarantor;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) this Guaranty constitutes the legal, valid and binding
obligation of such Guarantor enforceable against such Guarantor in
accordance with its terms, except as such enforceability may be limited
by (i)&nbsp;applicable bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium or other similar laws affecting the
enforcement of creditors&#146; rights generally and (ii)&nbsp;general principles of
equity (regardless of whether such enforceability is considered in a
proceeding in equity or at law);



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the execution, delivery and performance of this Guaranty will
not (i)&nbsp;contravene, result in any breach of, or constitute a default
under, or result in the creation of any Lien in respect of any property
of such Guarantor under, any agreement, or corporate charter or by-laws
to which such Guarantor is bound or by which such Guarantor or any of its
properties may be bound or affected, (ii)&nbsp;conflict with or result in a
breach of any of the terms, conditions or provisions of any order,
judgment, decree, or ruling of any court, arbitrator or Governmental
Authority applicable to such Subsidiary Guarantor or (iii)&nbsp;violate any
provision of any statute or other rule or regulation of any Governmental
Authority applicable to such Guarantor;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) except as disclosed in Section&nbsp;5.7 to the Note Purchase
Agreement, no consent, approval or authorization of, or registration,
filing or declaration with, any Governmental Authority is required in
connection with the execution, delivery or performance by such Guarantor
of this Guaranty, and all such consents, approvals, authorizations,
registrations, filings or declarations listed in Schedule&nbsp;5.7 have been
obtained or made;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) except as disclosed in Section&nbsp;5.8 of the Note Purchase
Agreement, there are no actions, suits or proceedings pending or, to the
knowledge of such Guarantor, threatened against or affecting such
Guarantor, or any property of such Guarantor, in any


<P align="center" style="font-size: 10pt">Exhibit&nbsp;1.2(b)



<P align="center" style="font-size: 10pt">9
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">





<P align="left" style="margin-left:3%; font-size: 10pt">court or before any arbitrator of any kind or before or by any
Governmental Authority that, individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) after giving effect to the transactions contemplated by the
giving of this Joinder and giving due consideration to any rights of
contribution (i)&nbsp;such Guarantor has received fair consideration and
reasonably equivalent value for the incurrence of its obligations
hereunder, (ii)&nbsp;the fair value of the assets of such Guarantor (both at
fair valuation and at present fair saleable value) exceeds its
liabilities, (iii)&nbsp;such Guarantor is able to and expects to be able to
pay its debts as they mature, and (iv)&nbsp;such Guarantor has capital
sufficient to carry on its business as conducted and as proposed to be
conducted.


<P align="left" style="font-size: 10pt">Capitalized Terms used but not defined herein have the meanings ascribed in the
Subsidiary Guaranty.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the undersigned has caused this Joinder to Subsidiary
Guaranty to be duly executed as of <U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U>, <U>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</U>.

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="60%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="0%">&nbsp;</TD>
    <TD width="34%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">&#091;Name of Guarantor&#093;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR size="1" noshade>&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">Exhibit&nbsp;1.2(b)



<P align="center" style="font-size: 10pt">10
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="right" style="font-size: 10pt">EXHIBIT 4.4(a)



<P align="center" style="font-size: 10pt">FORM OF OPINION OF COUNSEL<BR>
FOR THE COMPANY



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The opinion of Thompson &#038; Knight LLP, counsel for the Parent, the Company
and the Subsidiary Guarantors, shall be to the effect that:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The Company is a limited partnership validly existing and in good
standing under the laws of the State of Texas. Each of the Parent, EWC GP
Corp. and EWC LP Corp. is a corporation validly existing and in good standing
under the laws of the State of Delaware. EWC Aviation Corp. is a corporation
validly existing and in good standing under the laws of the State of Texas.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Each of the Company, the Parent and each Subsidiary Guarantor has the
corporate or partnership power to execute and deliver the Agreement, the Notes
and the Guaranty (the &#147;Note Documents&#148;), in each case to which it is a party,
and to perform its obligations thereunder. The execution, delivery and
performance of each Note Document has been duly authorized by all necessary
corporate or partnership proceedings on the part of each Client a party
thereto. Each Client has duly executed and delivered each Note Document to
which it is a party.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;If, notwithstanding the choice of Illinois law contained in the Note
Documents, Texas law were applied to such instruments, each Note Document would
constitute the legal, valid and binding obligation of the Company, the Parent
and each Subsidiary Guarantor (to the extent a party thereto) under Texas law,
enforceable against each in accordance with its terms.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;The execution, delivery and performance by each of the Company, the
Parent and each Subsidiary Guarantor of the Note Documents to which it is a
party, and the consummation of the transactions contemplated thereby, will not:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) violate any provision of its organizational documents, or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) breach or result in a default under or result in the maturing of
any of indebtedness, or create any lien, security interest or other
encumbrance, on any of its property pursuant to, the agreements and
instruments listed on Schedule&nbsp;C hereto, which have been identified by it
as all indentures, mortgages, deeds of trust and other Material
agreements and instruments to which it is a party; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) result in a violation of any federal or state law, rule or
regulation or, to our knowledge, any judgment, order, decree,
determination or award of any federal or state court or governmental
authority which is now in effect and applicable to such it or any of its
properties.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;To the knowledge of such counsel, no consent, approval, waiver,
license, authorization or action by or filing with or notice to any federal or
state court or governmental


<P align="center" style="font-size: 10pt">Exhibit&nbsp;4.4(a)



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="left" style="font-size: 10pt">authority or any third party is required for the execution and delivery by any
of the Company, the Parent or any Subsidiary Guarantor of any Note Document to
which it is a party or the consummation of the transactions contemplated
thereby.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;Assuming the accuracy of the representations and warranties made by the
Company in Paragraph&nbsp;5.14 of the Agreement, the extension of credit to the
Company pursuant to the Agreement, and the use of the proceeds therefrom by the
Company as represented and warranted by the Company in such Paragraph&nbsp;5.14 of
the Agreement, do not violate Regulations T, U or X promulgated by the Board of
Governors of the Federal Reserve System..


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;None of the Company, the Parent or any Subsidiary is (a)&nbsp;an &#147;investment
company&#148; or a company &#147;controlled&#148; by an &#147;investment company&#148; within the
meaning of the Investment Company Act of 1940, as amended, (b)&nbsp;a &#147;public
utility&#148; within the meaning of the Federal Power Act, as amended, or (c)&nbsp;a
&#147;holding company&#148; or a &#147;subsidiary company&#148; of a &#147;holding company&#148; or an
&#147;affiliate&#148; of a &#147;holding company&#148; within the meaning of the Public Utility
Holding Company Act of 1935, as amended.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;Assuming (a)&nbsp;the accuracy of the representations and warranties made by
the Company and the Parent in Section&nbsp;5.13 of the Agreement and by each
Purchaser in Section&nbsp;6.1 of the Agreement, (b)&nbsp;the due performance by the
Company and the Parent of the covenants set forth in Section&nbsp;5.13 of the
Agreement (and that no one acting on their behalf has taken any action
prohibited therein), and (c)&nbsp;each Purchaser&#146;s compliance with the offering
procedures and restrictions described in the Private Placement Memorandum dated
July, 2004 relating to the offering of the Notes, it is not necessary in
connection with the offering, issuance, sale and delivery of the Notes under
the circumstances contemplated by the Agreement to register the Notes under the
Securities Act of 1933, as amended, or to qualify an indenture with respect to
the Notes under the Trust Indenture Act of 1939, as amended. Such counsel need
not opine as to when or under what circumstances any Notes initially sold to
the Purchasers may be reoffered or resold.


<P align="left" style="font-size: 10pt">The opinion of Thompson &#038; Knight LLP, shall cover such other matters relating
to the sale of the Notes as the Purchasers may reasonably request. With
respect to matters of fact on which such opinion is based, such counsel shall
be entitled to rely on appropriate certificates of public officials and
officers of the Company and with respect to matters governed by the laws of any
jurisdiction other than the United States of America, the laws of the State of
Texas or the Delaware General Corporation Law, such counsel may rely upon the
opinions of counsel deemed (and stated in their opinion to be deemed) by them
to be competent and reliable. The opinions shall state that subsequent
transferees and assignees of the Notes may rely thereon.



<P align="center" style="font-size: 10pt">Exhibit&nbsp;4.4(a)



<P align="center" style="font-size: 10pt">&nbsp;2



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<P align="right" style="font-size: 10pt">EXHIBIT 4.4(b)



<P align="center" style="font-size: 10pt">FORM OF OPINION OF SPECIAL COUNSEL<BR>
TO THE PURCHASERS



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The opinion of Gardner Carton &#038; Douglas LLP, special counsel to the
Purchasers, shall be to the effect that:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;The Agreement and the Notes constitute the legal, valid and binding
agreements of the Company and the Parent, as the case may be, enforceable in
accordance with their terms, except to the extent that enforcement thereof may
be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws of general application relating to or affecting the enforcement of
the rights of creditors or by equitable principles, regardless of whether
enforcement is sought in a proceeding in equity or at law.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;The Guaranties constitute the legal, valid and binding obligation of
the Parent and each Subsidiary Guarantor, enforceable in accordance with their
terms, except to the extent the enforcement thereof may be limited by
applicable bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium or similar laws of general application relating to or affecting the
enforcement of the rights of creditors or by equitable principles, regardless
of whether enforcement is sought in a proceeding in equity or at law.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Based upon the representations set forth in the Agreement, the
offering, sale and delivery of the Notes and the execution and delivery of the
Guaranties do not require the registration of the Notes or the Guaranties under
the Securities Act of 1933, as amended, nor the qualification of an indenture
under the Trust Indenture Act of 1939, as amended.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;No approval, consent or withholding of objection on the part of, or
filing, registration or qualification with, any governmental body, Federal or
state, is necessary in connection with the execution and delivery of the
Agreement or the Notes.


<P align="left" style="font-size: 10pt">Gardner Carton &#038; Douglas LLP may rely upon the opinion of Thompson &#038; Knight LLP
(i)&nbsp;as to the due authorization, execution and delivery by the Parent, the
Company and the Subsidiary Guarantors of Agreement, the Notes and the
Guaranties to which they are parties, and (ii)&nbsp;as to all matters of Texas law.
The opinion of Gardner Carton &#038; Douglas LLP shall state that the opinion of
Thompson &#038; Knight LLP is satisfactory in form and scope to Gardner Carton &#038;
Douglas, and, in its opinion, the Purchasers and it are justified in relying
thereon. The opinion shall state that subsequent transferees and assignees of
the Notes may rely thereon and shall cover such other matters relating to the
sale of the Notes as the Purchasers may reasonably request.



<P align="center" style="font-size: 10pt">Exhibit&nbsp;4.4(b)




<P align="center" style="font-size: 10pt">&nbsp;
</DIV>


</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>4
<FILENAME>d19811exv31w1.htm
<DESCRIPTION>CERTIFICATION BY CHAIRMAN & CEO PURSUANT TO SECTION 302
<TEXT>
<HTML>
<HEAD>
<TITLE>exv31w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt">FORM 10-Q



<P align="right" style="font-size: 10pt">Exhibit&nbsp;31.1



<P align="center" style="font-size: 10pt"><B>CERTIFICATION OF CHIEF EXECUTIVE OFFICER</B>



<P align="left" style="font-size: 10pt">I, Vincent A. Rego, certify that:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>I have reviewed this quarterly report on Form 10-Q of Encore Wire Corporation;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the circumstances under which such statements were made,
not misleading with respect to the period covered by this quarterly report;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly
present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this quarterly report;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The registrant&#146;s other certifying officers and I are responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules&nbsp;13a-15(e) and 15d-15(e)), for the registrant and have;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" nowrap align="right">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this
quarterly report is being prepared;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" nowrap align="right">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this quarterly report
our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period
covered by this quarterly report based on such evaluation; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" nowrap align="right">c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>disclosed in this quarterly report any change in the registrant&#146;s internal control over financial reporting that occurred
during the registrant&#146;s most recent fiscal quarter (the registrant&#146;s fourth quarter in the case of an annual
report) that has materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal
control over financial reporting; and</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The registrant&#146;s other certifying officers and I have disclosed, based on our most recent evaluation of internal control
over financial reporting, to the registrant&#146;s auditors and the audit committee of registrant&#146;s board of directors (or
persons performing the equivalent functions):</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt">FORM 10-Q



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" nowrap align="right">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting
which are reasonably likely to adversely affect the registrant&#146;s ability to record, process, summarize and report
financial information; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" nowrap align="right">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any fraud, whether or not material, that involves management or other employees who have a significant role in the
registrant&#146;s internal control over financial reporting.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">Date: November&nbsp;8, 2004


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="58%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="24%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">/s/ VINCENT A. REGO</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR align="left" size="1" noshade width="95%"></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Vincent A. Rego</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><I>Chairman of the Board and</I></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><I>Chief Executive Officer</I></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>5
<FILENAME>d19811exv31w2.htm
<DESCRIPTION>CERTIFICATION BY VICE PRESIDENT, CFO, TREASURER & SECRETARY PURSUANT TO SECTION 302
<TEXT>
<HTML>
<HEAD>
<TITLE>exv31w2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt">FORM 10-Q



<P align="right" style="font-size: 10pt">Exhibit&nbsp;31.2



<P align="center" style="font-size: 10pt"><B>CERTIFICATION OF CHIEF FINANCIAL OFFICER</B>



<P align="left" style="font-size: 10pt">I, Frank J. Bilban, certify that:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>I have reviewed this quarterly report on Form 10-Q of Encore Wire Corporation;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the circumstances under which such statements were made,
not misleading with respect to the period covered by this quarterly report;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly
present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this quarterly report;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The registrant&#146;s other certifying officers and I are responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules&nbsp;13a-15(e) and 15d-15(e)) for the registrant and have;</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" nowrap align="right">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this
quarterly report is being prepared;</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" nowrap align="right">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this quarterly report
our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period
covered by this quarterly report based on such evaluation; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" nowrap align="right">c.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>disclosed in this quarterly report any change in the registrant&#146;s internal control over financial reporting that occurred
during the registrant&#146;s most recent fiscal quarter (the registrant&#146;s fourth quarter in the case of an annual
report) that has materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal
control over financial reporting; and</TD>
</TR>

</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="right">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The registrant&#146;s other certifying officers and I have disclosed, based on our most recent evaluation of internal control
over financial reporting, to the registrant&#146;s auditors and the audit committee of registrant&#146;s board of directors (or
persons performing the equivalent functions):</TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt">FORM 10-Q
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" nowrap align="right">a.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting
which are reasonably likely to adversely affect the registrant&#146;s ability to record, process, summarize and report
financial information; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" nowrap align="right">b.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>any fraud, whether or not material, that involves management or other employees who have a significant role in the
registrant&#146;s internal control over financial reporting.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">Date: November&nbsp;8, 2004


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="58%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="24%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">/s/ FRANK J. BILBAN</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR align="left" size="1" noshade width="95%"></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Frank J. Bilban</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap><I>Vice President &#150; Finance, Chief Financial </I></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><I>Officer, Treasurer and Secretary</I></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>6
<FILENAME>d19811exv32w1.htm
<DESCRIPTION>CERTIFICATION BY CHAIRMAN & CEO PURSUANT TO SECTION 906
<TEXT>
<HTML>
<HEAD>
<TITLE>exv32w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt">FORM 10-Q



<P align="right" style="font-size: 10pt">Exhibit&nbsp;32.1



<P align="center" style="font-size: 10pt"><B>CERTIFICATION FURNISHED PURSUANT TO<BR>
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002<BR>
(18 U.S.C. SECTION 1350)</B>


<P align="left" style="font-size: 10pt">In connection with
the Quarterly Report of Encore Wire Corporation (the &#147;Company&#148;) on Form
10-Q for the quarterly period ended September&nbsp;30, 2004, as filed with the
Securities and Exchange Commission on the date hereof (the &#147;Report&#148;), I,
Vincent A. Rego, Chairman and Chief Executive Officer of the Company,
certify pursuant to 18 U.S.C. 1350, as adopted pursuant to Section&nbsp;906 of
the Sarbanes-Oxley Act of 2002, that to my knowledge:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" nowrap align="right">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Report fully complies with the requirements of Section 13(a) or 15(d) of the
Securities Exchange Act of 1934, as amended; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" nowrap align="right">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The information contained in the Report fairly presents, in all material respects, the
financial condition and results of operations of the Company.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">Date: November&nbsp;8, 2004


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="24%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">/s/ VINCENT A. REGO</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR align="left" size="1" noshade width="95%"></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Vincent A. Rego</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><I>Chairman of the Board and</I></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><I>Chief Executive Officer</I></TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.2
<SEQUENCE>7
<FILENAME>d19811exv32w2.htm
<DESCRIPTION>CERTIFICATION BY VICE PRESIDENT, CFO, TREASURER & SECRETARY PURSUANT TO SECTION 906
<TEXT>
<HTML>
<HEAD>
<TITLE>exv32w2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="right" style="font-size: 10pt">FORM 10-Q



<P align="right" style="font-size: 10pt">Exhibit&nbsp;32.2



<P align="center" style="font-size: 10pt"><B>CERTIFICATION FURNISHED PURSUANT TO<BR>
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002<BR>
(18 U.S.C. SECTION 1350)</B>


<P align="left" style="font-size: 10pt">In connection with the Quarterly Report of Encore Wire Corporation (the &#147;Company&#148;) on Form 10-Q for
the quarterly period ended September&nbsp;30, 2004, as filed with the Securities and
Exchange Commission on the date hereof (the &#147;Report&#148;), I, Frank J. Bilban,
Vice-President&#151;Finance, Chief Financial Officer, Treasurer and Secretary of the
Company, certify pursuant to 18 U.S.C. 1350, as adopted pursuant to Section&nbsp;906
of the Sarbanes-Oxley Act of 2002, that to my knowledge:



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" nowrap align="right">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities
Exchange Act of 1934, as amended; and</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="9%" nowrap align="right">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The information contained in the Report fairly presents, in all material respects, the financial condition and
results of operations of the Company.</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">Date: November&nbsp;8, 2004


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="58%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="24%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="14%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">/s/ FRANK J. BILBAN</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><HR align="left" size="1" noshade width="95%"></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Frank J. Bilban</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap><I>Vice President &#150; Finance, Chief Financial </I></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><I>Officer, Treasurer and Secretary</I></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>




<P align="center" style="font-size: 10pt">&nbsp;
</DIV>


</BODY>
</HTML>

</TEXT>
</DOCUMENT>
</SUBMISSION>
